The 1099-DA is the most significant change to crypto tax reporting in years.
Between now and the end of February, crypto brokers will begin issuing 1099-DA forms reporting digital asset activity. For the first time, millions of taxpayers will receive formal crypto tax documents—and the IRS will receive the same information.
This isn’t meant to create panic.
But it does change expectations.
Accurate records are now essential to:
• avoiding IRS notices
• preventing overpayment due to missing cost basis
• reducing stress at filing time
What to know about the 1099-DA:
1️⃣ Broker reports are often incomplete
1099-DAs generally reflect activity on a single platform. They may not include transfers, full cost basis, or transactions across multiple wallets and exchanges.
2️⃣ The taxpayer is responsible for reconciliation
If you use multiple wallets or exchanges, inconsistencies between forms are common—and the responsibility to reconcile them ultimately falls on you.
3️⃣ Early review leads to better outcomes
Starting early allows time to review activity, resolve gaps, and file accurately instead of reacting to IRS notices later.
Our recommendation at Companion Tax:
If you’ve used crypto in more than one place, connect all wallets and exchanges to a reputable third-party tracking tool (such as CoinTracker or a similar platform). This helps create a complete, defensible record before filing.
If you’re unsure how your crypto activity will be reported this year, it’s worth addressing before tax season pressure sets in.
Between now and the end of February, crypto brokers will begin issuing 1099-DA forms reporting digital asset activity. For the first time, millions of taxpayers will receive formal crypto tax documents—and the IRS will receive the same information.
This isn’t meant to create panic.
But it does change expectations.
Accurate records are now essential to:
• avoiding IRS notices
• preventing overpayment due to missing cost basis
• reducing stress at filing time
What to know about the 1099-DA:
1️⃣ Broker reports are often incomplete
1099-DAs generally reflect activity on a single platform. They may not include transfers, full cost basis, or transactions across multiple wallets and exchanges.
2️⃣ The taxpayer is responsible for reconciliation
If you use multiple wallets or exchanges, inconsistencies between forms are common—and the responsibility to reconcile them ultimately falls on you.
3️⃣ Early review leads to better outcomes
Starting early allows time to review activity, resolve gaps, and file accurately instead of reacting to IRS notices later.
Our recommendation at Companion Tax:
If you’ve used crypto in more than one place, connect all wallets and exchanges to a reputable third-party tracking tool (such as CoinTracker or a similar platform). This helps create a complete, defensible record before filing.
If you’re unsure how your crypto activity will be reported this year, it’s worth addressing before tax season pressure sets in.