IRS Tweaks Crypto Tax Form to Categorize Digital Assets

The IRS has introduced changes to Form 1099-DA for the 2026 tax season, requiring digital assets to be categorized as either 'covered' or 'noncovered.'

Large crypto brokers like Coinbase, Kraken, and Crypto.com will issue these forms for the first time this year.

Crypto users who buy and sell entirely on one platform may not need to worry about the distinction between covered and noncovered assets. However, those who transfer their coins between different wallets or exchanges will face challenges in reporting taxable activity.

For noncovered assets, brokers are not required to report cost basis, leaving taxpayers responsible for reconstructing this information from their own records.