Form 1099-DA: Digital Asset Proceeds From Broker Transactions — Master Box-by-Box Decoder
Finalized under Treasury Decision 10000 (89 FR 56480), IRS Form 1099-DA is the mandatory federal tax information return issued by custodial digital asset brokers (Coinbase, Kraken, Robinhood, Gemini, Fidelity Crypto, PayPal, Cash App). Click any box on the facsimile below or explore our 6 specialized compliance guides and 17 individual box pages.
- IRC Section
- 26 U.S.C. §§ 6045, 1012, 3406 · TD 10000 · Treas. Reg. § 1.6045-1
- IRS Form & Line
- IRS Form 1099-DA (Boxes 1a–16) → Form 8949 (Boxes A–L)
- 2026 Federal Rate
- 0% / 15% / 20% LTCG (>365d) · 10%–37% STCG (Rev. Proc. 2025-32)
- 3.8% NIIT Applicability
- 3.8% Form 8960 Surtax > $200k Single / $250k MFJ (IRC § 1411)
- 1099-DA Box Mapping
- Box 1f Proceeds → Col (d) · Box 1g Basis → Col (e) · Box 3b/9
- Statute of Limitations / Rev. Proc.
- 3 Yrs Standard (IRC § 6501(a)) · 6 Yrs >25% Omission · Rev. Proc. 2024-28
▸ Inspect 1200×675 CPA Statutory Workpaper Summary Card (IRS Form 1099-DA Guide: All 17 Boxes & Mis) WebP 1200×675
Adjusted cost basis in USD of the digital asset units disposed of (including acquisition fees). Mandatory starting Jan 1, 2026 for covered digital assets acquired and held inside the same custodial broker; often blank for 2025 or for assets transferred in from self-custody.
TD 10000 Statutory Rollout Timeline (2025 vs 2026+ vs DeFi Repeal)
IRS Statutory Rule: Form 1099 establishes the following verified 2026 benchmark values under “TD 10000 Statutory Rollout Timeline (2025 vs 2026+ vs D”: Phase 1 — Gross Proceeds Reporting (2025 · 2025-01-01), Phase 2 — Mandatory Cost Basis Reporting for Covered Digital Assets (2026 · 2026-01-01), DeFi & Unhosted Wallets Exemption (Public Law 119-5) (2025-2027+ · 2025-04-10).
| Rollout Phase | Tax Year | Effective Date | What Digital Asset Brokers Report to the IRS |
|---|---|---|---|
| Phase 1 — Gross Proceeds Reporting | 2025 | 2025-01-01 | Gross proceeds (Box 1f), digital asset DTIF code (Box 1a), asset name (Box 1b), units sold (Box 1c), and disposition date (Box 1e). Cost basis (Box 1g) is optional/not mandatory for 2025 transactions, meaning taxpayers must supply their own historical cost basis on Form 8949. |
| Phase 2 — Mandatory Cost Basis Reporting for Covered Digital Assets | 2026 | 2026-01-01 | Both Gross Proceeds (Box 1f) AND Adjusted Cost Basis (Box 1g), acquisition date (Box 1d), and holding period character (Box 2) for 'covered securities' — defined as digital assets acquired on or after Jan 1, 2026 inside a custodial broker account and held continuously in that broker until disposition. |
| DeFi & Unhosted Wallets Exemption (Public Law 119-5) | 2025-2027+ | 2025-04-10 | Treasury Decision 10021 (which attempted to classify non-custodial DeFi front-end interfaces as brokers starting in 2027) was repealed under the Congressional Review Act (H.J.Res. 25 / Public Law 119-5). Non-custodial wallets (MetaMask, Phantom, Rabby, Ledger, Trezor) and decentralized protocols (Uniswap, Aave, Jupiter) do NOT issue Form 1099-DA. |
6 Form 1099-DA Audit & Reconciliation Deep-Dive Guides
IRS Statutory Rule: Form 1099 is governed in 2026 by IRS Rev. Proc. 2025-32 (0%/15%/20% long-term brackets plus 3.8% NIIT) and mandatory Form 1099-DA gross proceeds reporting.
1. Blank Box 1g / Missing Cost Basis Fix
Why transferred-in self-custody lots show a blank Box 1g and how to report verified basis on Form 8949 Box B/E (H/K) so you never pay tax twice.
Read Blank Box 1g Guide →2. $10,000 Qualifying Stablecoin Rule
Treas. Reg. § 1.6045-1(d)(10)(i) $10,000 annual de minimis threshold and non-designated sale exemption for USDC, USDT, and PYUSD.
Open Stablecoin $10k Checker →3. $600 Specified NFT & Box 11c Rules
How the $600 annual Specified NFT threshold works, aggregate reporting code 999999999, and Box 11c first-sale creator proceeds.
Read NFT 1099-DA Guide →4. Public Law 119-5 DeFi Broker Repeal
How Congress repealed Treasury Decision 10021 under the Congressional Review Act—why Uniswap, MetaMask, Phantom, and Ledger do not issue 1099-DA.
Read DeFi CRA Repeal Guide →5. IRS Notice CP2000 Mismatch Response
Step-by-step response workflow when IRS Automated Underreporter (AUR) sends a CP2000 notice assuming $0 cost basis on your 1099-DA proceeds.
Read CP2000 Response Guide →6. Box 4 Backup Withholding (24%) & W-9 TIN
How IRC § 3406 24% backup withholding works on digital asset sales, Notice 2024-56 transitional relief, and claiming Box 4 credits on Form 1040 Line 25b.
Read Box 4 Withholding Guide →Complete Directory of All 17 Boxes on IRS Form 1099-DA
IRS Statutory Rule: Form 1099 establishes the following verified 2026 benchmark values under “Complete Directory of All 17 Boxes on IRS Form 1099-DA”: Box 1a (Code for digital asset), Box 1b (Name of digital asset), Box 1c (Number of units).
| Box | Official IRS Box Label | Statutory Explanation (TD 10000) | Form 8949 / Schedule D Destination |
|---|---|---|---|
| Box 1a | Code for digital asset | 9-character alphanumeric Digital Token Identifier (DTI) registered with the Digital Token Identifier Foundation (DTIF) under ISO 24165. Enters '999999999' if the token has no registered DTI or for aggregated Specified NFTs. | Used alongside Box 1b to identify the property in Column (a) of Form 8949. |
| Box 1b | Name of digital asset | Full commercial name or ticker symbol of the digital asset disposed of (e.g., 'Bitcoin (BTC)', 'USD Coin (USDC)', or 'Specified NFTs' under optional aggregate reporting). | Form 8949, Column (a) — Description of property. |
| Box 1c | Number of units | Exact quantity of digital asset units sold, swapped, or disposed of in the transaction (reported up to 18 decimal places). | Form 8949, Column (a) — Description of property (e.g., '1.25000000 BTC'). |
| Box 1d | Date acquired | Original acquisition date (MM/DD/YYYY) for covered digital assets. Left blank if multiple tax lots with different dates were sold ('VARIOUS'), if the asset is noncovered/transferred in from an external wallet, or if aggregate stablecoin/NFT reporting is used. | Form 8949, Column (b) — Date acquired. |
| Box 1e | Date sold or disposed | Exact transaction date (MM/DD/YYYY) when the sale, swap, or disposition occurred (measured in UTC or consistent broker timezone). | Form 8949, Column (c) — Date sold or disposed of. |
| Box 1f | Proceeds | Gross proceeds in USD from the disposition (cash received, or Fair Market Value in USD of other digital assets, property, or services received), net of allocable digital asset transaction/broker fees. | Form 8949, Column (d) — Proceeds (sales price). |
| Box 1g | Cost or other basis | Adjusted cost basis in USD of the digital asset units disposed of (including acquisition fees). Mandatory starting Jan 1, 2026 for covered digital assets acquired and held inside the same custodial broker; often blank for 2025 or for assets transferred in from self-custody. | Form 8949, Column (e) — Cost or other basis. If blank or inaccurate due to missing transfer history, taxpayer must report true basis from wallet-by-wallet records. |
| Box 1h | Accrued market discount | Accrued market discount if the digital asset is a tokenized debt instrument subject to IRC §§ 1276–1278. | Form 8949, Column (f) code 'D' and Column (g) adjustment. |
| Box 1i | Wash sale loss disallowed | Wash sale loss disallowed under IRC § 1091. Only applies to digital assets that are ALSO tokenized stocks or securities under § 1091 (does NOT apply to spot BTC, ETH, or SOL, which are property rather than § 1091 securities). | Form 8949, Column (f) code 'W' and Column (g) positive adjustment. |
| Box 2 | Checkboxes: Short-term / Long-term / Ordinary / Basis reported to IRS | Indicates whether the gain/loss is Short-Term (held <= 1 year) or Long-Term (held > 1 year), whether Basis in Box 1g was reported to the IRS, and whether the asset is a covered security. | Determines whether transaction goes to Form 8949 Part I (Short-Term) or Part II (Long-Term) and whether Basis Reported vs Basis Not Reported checkbox is selected. |
| Box 3a / 3b | Broker type & Noncovered security indicator | Box 3a indicates the type of broker facilitating the transaction; Box 3b is checked if the digital asset is a noncovered security (e.g., acquired before Jan 1, 2026 or transferred into the broker from an unhosted wallet), meaning Box 1g basis is not reported to the IRS. | Directs taxpayer to check the 'Basis NOT reported to the IRS' box on Form 8949 and supply verified cost basis. |
| Box 4 | Federal income tax withheld | Backup withholding (24% under IRC § 3406) deducted if the taxpayer failed to furnish a valid Form W-9 TIN. | Reported as a payment credit on Form 1040, Line 25b. |
| Box 5 | Check if loss is not allowed based on amount in 1f | Checked if a loss cannot be claimed on the return due to a reportable corporate control change or capital structure change. | Form 8949, Column (f) code 'Z' or 'L'. |
| Box 7 | Check if only cash proceeds were paid in the transaction | Checked if the disposition was strictly for fiat cash (USD), as opposed to a crypto-to-crypto swap or property/services exchange. | Informational verification of valuation method. |
| Box 9 | Check if customer transferred in the digital asset prior to sale | Flags that the units sold were deposited into the broker from an external wallet or another exchange, alerting the taxpayer and IRS that the broker lacks original acquisition cost basis. | Taxpayer must pull original acquisition date and basis from their Rev. Proc. 2024-28 / IRC § 1012 wallet-by-wallet ledger. |
| Box 11a / 11b / 11c | Optional Reporting Method: Qualifying Stablecoins & Specified NFTs | Box 11a indicates whether the entry uses the optional aggregate reporting method for Qualifying Stablecoins or Specified NFTs; Box 11b lists the aggregate number of transactions included; Box 11c reports aggregate gross proceeds from first-sale creations/minting of Specified NFTs by a creator. | Box 1f aggregate sales map to Form 8949; Box 11c primary creator sales generally map to Schedule C / ordinary income. |
| Box 14 / 15 / 16 | State Name, State Identification No., and State Tax Withheld | Reports state-level tax reporting abbreviation (Box 14), broker state ID (Box 15), and state income tax withheld (Box 16). | Flows to state income tax return (e.g., CA Form 540, NY IT-201). |
2026 Taxpayer Scenario Comparison Matrix (Single $75k vs Married $250k vs High-Earner $600k+)
The statutory matrix below compares 2026 combined Federal, 3.8% Net Investment Income Tax (IRC § 1411 Form 8960), and Federal Baseline (0% State Tax) tax liabilities across three representative US taxpayer profiles:
| Statutory Dimension / Tax Metric | Profile A: Single Filer ($75,000 Base AGI + $15,000 Crypto Gain) | Profile B: Married Joint ($250,000 Base AGI + $50,000 Crypto Gain) | Profile C: High-Earner ($600,000+ Base AGI + $250,000 Crypto Gain) |
|---|---|---|---|
| 2026 Federal Ordinary / Short-Term Rate (<= 365 Days) | 22.00% Federal (22.00% Combined) | 24.00% + 3.80% NIIT (27.80% Combined) | 37.00% + 3.80% NIIT (40.80% Combined) |
| 2026 Federal Long-Term Capital Gains Rate (> 365 Days) | 15.00% Federal (15.00% Combined) | 15.00% + 3.80% NIIT (18.80% Combined) | 20.00% + 3.80% NIIT (23.80% Combined) |
| Estimated Tax on Short-Term vs Long-Term Disposition | $3,300 (ST) vs $2,250 (LT) | $13,900 (ST) vs $9,400 (LT) | $102,000 (ST) vs $59,500 (LT) |
| Long-Term Holding Period Tax Savings (> 1 Year) | $1,050 Saved (7.00% Spread) | $4,500 Saved (9.00% Spread) | $42,500 Saved (17.00% Spread) |
| Form 1099-DA & Form 8949 Reporting Requirement | Form 8949 Box A/D (Covered) or Box B/E (Noncovered) -> Schedule D | Form 8949 + Schedule D + Form 8960 (3.8% NIIT on $50k over $250k MFJ) | Form 8949 + Schedule D + Form 8960 + Rev. Proc. 2024-28 Specific ID Ledger |
Form 1099-DA Deadlines
2026 Trades: Covered cost basis (Box 1g) mandatory starting Jan 1, 2026 (furnished Feb 16, 2027).
Universal Pooling Banned
Pig-Butchering Loss Relief
2026 IRS Compliance Chain, Form 1099-DA Workflow & Disallowance Rules: Form 1099
IRS Statutory Rule: Form 1099 is governed in the 2026 tax year by IRC §§ 1001, 1221, and 1222, IRS Notice 2014-21, Rev. Proc. 2024-28, and Rev. Proc. 2025-32, taxing short-term dispositions (≤ 365 days) at ordinary rates up to 37% and long-term gains (> 365 days) at 0%, 15%, or 20% plus the 3.8% Net Investment Income Tax (NIIT).
- Segregate Per-Wallet Cost Basis Pools (Rev. Proc. 2024-28): The taxpayer maintains separate FIFO or Specific-ID cost basis ledgers for each custodial broker and each self-custodied wallet address.
- Ingest Broker Form 1099-DA Statements: By February 15, custodial exchanges issue Form 1099-DA reporting gross proceeds (Box 1f) and covered cost basis for each digital asset sale or swap.
- Classify Ordinary Income vs. Capital Gains: Staking rewards, mining payouts, and airdrops are recorded on Schedule 1 / Schedule C at fair market value in USD at the exact timestamp of dominion and control.
- Populate IRS Form 8949 (Parts I & II): Dispositions are separated into Part I (Short-Term ≤ 365 days) and Part II (Long-Term > 365 days) using Checkboxes G, H, I (short-term) or J, K, L (long-term).
- Apply State Income Tax Conformity: Net capital gains flow from federal Schedule D to the taxpayer's state return (0% in AK, FL, NV, NH, SD, TN, TX, WA, WY vs. up to 13.3% in California).
- Answer the Form 1040 Digital Asset Question: The filer checks “Yes” or “No” on page 1 of Form 1040 and retains cryptographic transaction logs for the 3-to-6-year IRS statute of limitations (IRC § 6501).
Statutory Myth Debunked (Restriction): A tax-free crypto-to-crypto or BTC-to-USDT stablecoin swap under IRC § 1031 like-kind exchange rules does not exist: Congress restricted IRC § 1031 exclusively to real property under the Tax Cuts and Jobs Act, making every coin-to-coin trade, DeFi liquidity swap, and stablecoin conversion an immediately taxable disposition under IRC § 1001.
To model exact liabilities for Form 1099, run the 2026 federal and 50-state crypto capital gains tax calculator incorporating IRS Rev. Proc. 2025-32 brackets (0%, 15%, 20%) plus 3.8% NIIT (short-term vs long-term 365-day holding threshold), verify reporting codes in our interactive IRS Form 1099-DA box-by-box reconciliation guide under Treasury Decision 10000 (89 FR 56480) gross proceeds reporting (Form 8949 Part I and Part II adjustment codes), and review wallet-by-wallet cost basis allocation under Rev. Proc. 2024-28 (mandatory per-account FIFO/Specific ID tracking from January 1, 2026).
2026 IRS Form 1099-DA & 8949 Filing Readiness Tracker
0 / 4 Complete2026 IRS Rev. Proc. & State Tax Rate Dispatch
Title 26 AlertsReceive instant CPA alerts when the IRS issues new Form 1099-DA guidance, Internal Revenue Bulletins, or 50-state capital gains rate amendments—or download this page's statutory workpaper `.txt` file.
Statutory Frequently Asked Questions & IRS Citations
IRS Statutory Rule: Form 1099 is governed in 2026 by IRS Rev. Proc. 2025-32 (0%/15%/20% long-term brackets plus 3.8% NIIT) and mandatory Form 1099-DA gross proceeds reporting.
When do crypto exchanges send Form 1099-DA for 2025 and 2026 transactions?
Brokers furnish Form 1099-DA to taxpayers by mid-February of the following year (February 17, 2026 for 2025 gross proceeds; February 16, 2027 for 2026 gross proceeds and covered cost basis) and file electronically with the IRS by March 31.
Do MetaMask, Phantom, Ledger, or Uniswap send Form 1099-DA?
No. Under Public Law 119-5 (enacted April 2025 under the Congressional Review Act), Congress repealed the IRS non-custodial DeFi broker rule (TD 10021). Self-custody wallets and decentralized smart contracts do not issue Form 1099-DA, though users must still self-report on-chain swaps on Form 8949.
Why is Box 1g (Cost Basis) blank on my 2026 IRS Form 1099-DA?
Under Treasury Decision 10000 (Treas. Reg. § 1.6045-1) and IRS Notice 2024-56, digital assetlots acquired prior to January 1, 2026, or transferred in from an external self-custody wallet or another exchange, are classified as noncovered securities (Box 5 checked). Custodial brokers report gross proceeds in Box 1f to the IRS, leaving Box 1g blank so you can enter your verified historical cost basis in Form 8949 Column (e) under Box B or Box E.
How do I prevent an IRS CP2000 Automated Underreporter notice when Form 1099-DA omits my cost basis?
Ensure that the sum of gross proceeds reported in Column (d) across all Form 8949 sheets equals or exceeds the aggregate Box 1f proceeds reported on all Forms 1099-DA filed under your SSN/TIN. Place noncovered lots on Form 8949 Part I Box B (short-term) or Part II Box E (long-term) and enter your Rev. Proc. 2024-28 wallet-specific cost basis in Column (e).
Does transferring Bitcoin or Ethereum between my own wallets trigger Form 1099-DA Box 1f proceeds?
No. A non-taxable wallet-to-wallet transfer of identical digital assets owned by the same taxpayer does not trigger a sale or disposition under IRC § 1001. However, the receiving custodial broker records the inbound transfer in Form 1099-DA Box 12 (Units Transferred In), and when those units are later sold, they are reported as noncovered lots requiring external basis documentation.
How does the $10,000 Qualified Stablecoin de minimis threshold (Box 11a) work on Form 1099-DA?
Under Treas. Reg. § 1.6045-1(d)(10), custodial brokers may report designated qualified stablecoin dispositions (such as USDC or PYUSD) on an aggregate basis in Box 11a/11b—and are exempt from reporting if your aggregate qualified stablecoin sales at that broker do not exceed $10,000 for the calendar year.