Crypto Investors Struggle with Incomplete 1099-DA Forms Amid First Tax Season

The first US tax season under the 1099-DA reporting rules is causing headaches for crypto investors as they prepare to file their taxes. According to a survey of 1,000 US crypto investors, 21% were still waiting for necessary information from an exchange or crypto platform, while 20% said their 1099-DA forms were incomplete or unsure if the forms accurately reflected their transactions.

The 1099-DA rules require brokers to report digital-asset sale proceeds, but they do not have to report cost basis in most cases. This leaves taxpayers responsible for calculating gains and losses. Beginning in 2026, brokers must report cost basis for eligible digital-asset transactions, which is intended to provide more information for future filings.

The Internal Revenue Service has stated that digital-asset income and gains or losses must be reported even when a taxpayer does not receive a 1099-DA. This means that taxpayers still need to review their records and report digital-asset income and gains or losses.