Crypto Exchanges' Incomplete Forms Strain US Taxpayers in Filing Season

Crypto tax filing season is bringing a familiar problem into focus: more data for the IRS but still a heavy lift for taxpayers. Under new broker reporting requirements, exchanges are now required to report gross proceeds from certain digital asset sales on Form 1099-DA, but cost basis is generally not included. This mismatch between what exchanges report and what returns require is causing difficulties for taxpayers.

A recent survey of US crypto investors by Awaken Tax found that 21% of respondents who had filed or planned to file an extension were still waiting for information needed from an exchange or platform, while a further 20% said their 1099-DA was incomplete or they were unsure whether it accurately reflected their transactions.

Tax professionals say reconciling 1099-DAs with full trade histories is difficult, especially when activity spans multiple platforms and years. Some exchanges have been delivering 1099-DAs late in the filing season or with transaction details that appear inconsistent with customer records.

Cost basis reporting is slated to expand in 2026 for covered assets, but transfers into broker accounts from outside sources may still create gaps. The IRS's approach effectively increases how much sale information the tax authority receives while taxpayers remain responsible for the arithmetic.