IRS Form 1099-DA Brings New Crypto Cost Basis Rules for 2026
The IRS has introduced Form 1099-DA to report gross proceeds from digital asset transactions. This new system enables automated matching between exchange data and individual tax returns, increasing the IRS's ability to identify discrepancies between broker-reported proceeds and taxpayer filings.
Crypto brokers are required to report both gross proceeds and adjusted cost basis starting with the 2026 tax year. However, this expansion applies exclusively to covered digital assets acquired on or after January 1, 2026, which must remain within the same broker account continuously to qualify.
Assets acquired before 2026 or transferred between platforms fall into the non-covered category, and brokers have no obligation to report the basis for these holdings under current IRS guidance. Taxpayers remain solely responsible for tracking and substantiating their own cost basis.