2026 Instructions for Form 1099-DA

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2026

Instructions for Form
1099-DA
Digital Asset Proceeds From Broker Transactions
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

For the latest information about developments related to
Form 1099-DA and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form1099DA.

For further guidance, taxpayers may refer to Treasury
Decision 10000, published July 9, 2024.
You can get Pub. 1099, General Instructions for Certain
Information Returns at IRS.gov/1099GeneralInstructions.

Reminders

In addition to these specific instructions, you should also
use the current Pub. 1099. Those general instructions
include information about the following topics.
• Who must file.
• When and where to file.
• Electronic reporting.
• Corrected and void returns.
• Statements to recipients.
• Taxpayer identification numbers (TINs).
• Backup withholding.
• Penalties.
• Other general topics.
Online fillable copies. To ease statement furnishing
requirements, Copies B, 1, and 2 are fillable online in a
PDF format available at IRS.gov/Form1099DA. You can
complete these copies online for furnishing statements to
recipients and for retaining in your own files.

General Instructions
2026 and beyond—Mandatory reporting of gross proceeds for all digital assets, mandatory reporting of
basis information for digital assets that are covered
securities, and voluntary reporting of basis information for digital assets that are noncovered securities.
For each sale a broker has effected for customers after
2025 of digital assets, the broker must complete Form
1099-DA, as described in For sales effected after 2025.
For sales of digital assets that are qualifying
stablecoins or specified nonfungible tokens (NFTs) a
broker has effected for customers after 2025, and for
which a broker is using the Optional reporting methods,
the broker is not required to report basis and certain other
information.
For sales a broker has effected for customers after
2025 of digital assets that are covered securities, the
broker is required to report basis information. For sales a
Feb 18, 2026

broker has effected for customers after 2025 of digital
assets that are noncovered securities, the broker is not
required to report basis information. However, the broker
may voluntarily report this information and will not be
subject to penalties under section 6721 or 6722 for failure
to report or furnish the information correctly if the broker
checks box 9 to indicate that the digital assets are
noncovered securities.
Brokers. A broker includes any person who, in the
ordinary course of a trade or business, stands ready to
effect sales of digital assets to be made by others.
You are considered a broker with respect to sales of
digital assets if:
• You are a person that regularly offers to redeem digital
assets that were created or issued by you, or
• You effect dispositions of customers’ digital assets as
an agent, a dealer, or digital asset middleman.
Generally, only a U.S. digital asset broker is required to
report on Form 1099-DA. A U.S. digital asset broker is a
U.S. person (other than a foreign branch or office of such
person), or a U.S. branch described in Regulations
section 1.1441-1(b)(2)(iv) that is treated as a U.S. person
(excluding a territory financial institution) that effects sales
of digital assets on behalf of others. See Regulations
section 1.6045-1(g)(4)(i)(A). See Widely held fixed
investment trusts (WHFITs), later, for rules specific to
WHFIT reporting.
Closing transactions. In the case of a digital asset that
is also an option, regulated futures contract, securities
futures contract, or forward contract, a sale includes any
closing transaction. A closing transaction is a lapse,
expiration, settlement, abandonment, or other termination
of a position (which includes a right or an obligation under
a forward contract, a regulated futures contract, a
securities futures contract, or an option).
Covered security. For purposes of Form 1099-DA, a
covered security is a digital asset acquired after 2025 for
cash, stored-value cards, different digital assets, or any
property or services the disposition of which the broker is
required to report in an account for which the broker
provided custodial services. A digital asset is a covered
security only if it was acquired in an account for which the
broker provided custodial services and was held in that
account until the broker effects the disposition of the
digital asset. Acquiring a digital asset includes granting an
option and entering into a forward contract.
Digital asset. A digital asset is any digital representation
of value that is recorded on a cryptographically secured
distributed ledger (such as a blockchain or any similar
technology) without regard to whether each individual

Instructions for Form 1099-DA (2026) Catalog Number 73597W
Department of the Treasury Internal Revenue Service www.irs.gov

transaction involving that digital asset is actually recorded
on that distributed ledger, and that is not cash (that is, U.S.
dollars or any convertible foreign currency issued by a
government or central bank). See Qualifying stablecoin
and Specified NFT, later, for a description of digital assets
that are qualifying stablecoins or specified NFTs.
Digital asset middleman. You are a digital asset
middleman if:
• You accept or process digital assets as payment for
stock, commodities, regulated futures contracts, securities
futures contracts, forwards contracts, foreign currency
contracts, debt instruments, options, or securities futures
contracts;
• You are a real estate reporting person with actual
knowledge or ordinarily would know that digital assets
were used by the real estate buyer to make payment;
• You accept digital assets as payment for broker
services;
• You own or operate one or more digital asset kiosks; or
• You are a processor of digital asset payments, provided
you have actual knowledge or ordinarily would know the
nature of the transaction and the gross proceeds
therefrom.
You are not a digital asset middleman if:
• You are solely engaged in providing proof-of-work or
proof-of-stake distributed ledger validation services,
without providing other functions or services, or
• You only provide hardware or software (by sale, license,
or otherwise) that permits users to control private keys to
access digital assets on a distributed ledger, without
providing other functions or services.
Processor of digital asset payments. A processor of
digital asset payments is a broker who regularly facilitates
payments from one party to a second party by receiving
digital assets from the first party and paying those digital
assets, cash, or different digital assets to a second party,
provided the transaction is not otherwise a sale under
Regulations sections 1.6045-1(a)(9)(ii)(A) through (C).
Noncovered security. For purposes of Form 1099-DA,
a noncovered security is any digital asset that is not a
covered security. The following digital assets are
noncovered securities.
• Any digital asset that the broker did not provide
custodial services for when it was acquired.
• A digital asset that was acquired before 2026.
• A digital asset that was transferred in to the broker
providing custodial services.
• A digital asset that, when acquired, would not be
subject to reporting on Form 1099-DA when later sold
because it was acquired by an exempt recipient, as
defined in Regulations section 1.6045-1(c)(3)(i), or by a
person that is considered to be an exempt foreign person
under Regulations sections 1.6045-1(g)(1) and (4).
• A digital asset for which reporting is required by
Regulations section 1.6045-1(g)(4)(vi)(E) (certain
securities owned by a foreign intermediary or flow-through
entity).
Qualifying stablecoin. A digital asset is a qualifying
stablecoin if it meets three conditions:
• The digital asset is designed to track on a one-to-one
basis a single convertible currency issued by a
government or central bank (including the U.S. dollar);
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• The digital asset uses an effective stabilization
mechanism. See Regulations section 1.6045-1(d)(10)(ii)
(B); and
• The digital asset is generally accepted as payment by
persons other than the issuer. See Regulations sections
1.6045-1(d)(10)(ii)(A) through (C).
Designated sale of qualifying stablecoin. A
designated sale of a qualifying stablecoin is any sale of a
qualifying stablecoin other than a sale of a qualifying
stablecoin in exchange for different digital assets that are
not qualifying stablecoins. In addition, a designated sale
of a qualifying stablecoin includes any sale of a qualifying
stablecoin that provides for the delivery of a qualifying
stablecoin pursuant to the settlement of any executory
contract that would be treated as a designated sale of the
qualifying digital asset if the contract had not been
executory.
Sale. A sale of digital assets effected by a broker on
behalf of another person includes:
• The disposition of digital assets in exchange for cash,
stored-value cards, different digital assets, or services
provided by the broker;
• The disposition of digital assets to pay for securities,
commodities, options, regulated futures contracts,
securities futures contracts, or forward contracts acquired
through the broker;
• The delivery of digital assets pursuant to the settlement
of a forward contract, option, regulated futures contract,
any similar instrument, or any other executory contract
which would be described in the previous bullet if the
contract had not been executory;
• For brokers that are real estate reporting persons, the
disposition of digital assets in exchange for real property
and services; and
• For brokers that are processors of digital asset
payments, the payment of a digital asset by one party to a
processor of digital asset payments in return for the
payment of that digital asset, cash, or a different digital
asset to a second party (PDAP sale). See De minimis rule
for PDAP sales, later.
Specified NFT. A digital asset is a specified NFT if the
digital asset is indivisible, unique, and does not directly (or
indirectly) provide the holder with an interest in certain
excluded property. See Regulations section 1.6045-1(d)
(10)(iv).
De minimis rules for certain sales. A broker is not
required to report sales of digital assets on Form 1099-DA
if the sales fall within the following de minimis exceptions.
De minimis rule for PDAP sales. A broker that is a
processor of digital asset payments is not required to
report PDAP sales effected for a customer if those PDAP
sales are less than or equal to $600 for the year. However,
if a customer's PDAP sales exceed $600 for the year, all of
that customer's sales must be reported. In determining if
the $600 de minimis threshold has been met, the broker
should not include any sales that are excluded from
reporting under the optional reporting methods for
qualifying stablecoins or for specified NFTs. Accordingly, a
broker that is a processor of digital asset payments may
apply the optional reporting rules for qualifying stablecoins
and for specified NFTs first, and then determine whether
Instructions for Form 1099-DA (2026)

the remaining PDAP sales exceed the $600 de minimis
threshold. See Regulations section 1.6045-1(d)(2)(i)(C).
De minimis rule for qualifying stablecoin sales. A
broker reporting under the optional reporting method for
qualifying stablecoins is not required to report designated
sales of qualifying stablecoins if the customer's aggregate
gross proceeds (after reduction for the allocable digital
asset transaction costs) from all designated sales of
qualifying stablecoins effected by that broker do not
exceed $10,000 for the year. See Regulations section
1.6045-1(d)(10)(i).
De minimis rule for specified NFTs. A broker
reporting sales of specified NFTs using the optional
reporting method for specified NFTs is not required to
report sales of specified NFTs if the customer's aggregate
gross proceeds (after reduction for the allocable digital
asset transaction costs) from all sales of specified NFTs
do not exceed $600 for the year. See Regulations section
1.6045-1(d)(10)(iii)(B).

General Reporting
Amounts to report. Generally, report all amounts
attributable to a sale of digital assets you effect as a
broker on Form 1099-DA. However, a broker is not
required to report amounts attributable to a sale of digital
assets if an applicable de minimis rule applies. If a de
minimis rule does not apply, all amounts attributable to the
sale must be reported in accordance with the applicable
reporting rules. For de minimis rules applicable to
processors of digital asset payments, qualifying
stablecoins, and specified NFTs, see De minimis rules for
certain sales, earlier.
For brokers using an optional method for reporting
sales of qualifying stablecoins and specified NFTs, see
Optional reporting methods, later.
Generally, you should report each transaction on a
separate Form 1099-DA. However, in the case of a
disposition of digital assets in exchange for services
provided by the broker (broker fee), the broker may
combine the reporting of the transaction to pay for broker
fees with the underlying transaction for which the broker
fee was charged if the broker fee is paid using the digital
asset disposed in the underlying transaction. For example,
if a broker effects on behalf of a customer the sale of 1 unit
of Digital Asset A for ten units of Digital Asset B (charging
0.1 units of Digital Asset A for the broker's services), the
broker may file one Form 1099-DA to report the
customer's sale of 1.1 units of Digital Asset A. The broker
may not combine the reporting of a transaction to pay for
broker fees with the underlying transaction for which the
broker fee was charged if the broker fee is paid in a digital
asset other than the digital asset disposed in the
underlying transaction.
How many transactions to report on each form.
Report each transaction on a separate Form 1099-DA.
How many forms to file for each transaction. Report
sales of each of the following types of digital assets on a
separate Form 1099-DA, even if all four types were sold in
a single transaction.
• Covered securities (defined earlier) with short-term gain
or loss.
• Covered securities with long-term gain or loss.
Instructions for Form 1099-DA (2026)

• Noncovered securities if you check box 9 when
reporting their sale. If you choose to not check box 9,
report the sale as a sale of a covered security.
• First sales by a creator or minter if you report sales of
specified NFTs using the optional reporting method for
specified NFTs.
Optional reporting methods. A broker reporting sales
of qualifying stablecoins using the optional reporting
method for qualifying stablecoins is not required to report
non-designated sales of qualifying stablecoins. In
addition, if a broker is using the optional reporting method
for designated sales of qualifying stablecoins and the
customer's aggregate gross proceeds from all designated
sales of qualifying stablecoins effected by that broker
exceed the $10,000 de minimis rule for the year, the
broker must report a customer’s aggregate designated
sale transactions for each type of qualifying stablecoin on
a separate Form 1099-DA. See De minimis rule for
qualifying stablecoin sales, earlier. For example, if the
broker effects designated sales of Qualifying Stablecoin A
and Qualifying Stablecoin B for a customer and the
aggregate gross proceeds of those sales exceed $10,000,
the broker must report the customer's designated sales of
Qualifying Stablecoin A on one Form 1099-DA and the
customer's designated sales of Qualifying Stablecoin B on
a separate Form 1099-DA.
If a broker is using the optional reporting method for
sales of specified NFTs and the $600 de minimis rule for
such sales does not apply, the broker must report all of a
customer's specified NFT transactions together on a
single Form 1099-DA. See De minimis rule for specified
NFTs, earlier.
A broker reporting sales of specified NFTs using the
optional reporting method for specified NFTs may report
all of a customer's specified NFT transactions together on
a single Form 1099-DA, unless the broker is reporting both
gross proceeds attributable to first sales by a creator or
minter and gross proceeds attributable to specified NFT
sales that are not first sales.
A broker reporting sales of specified NFTs using the
optional reporting method for specified NFTs is required to
file two Forms 1099-DA if it is reporting aggregate gross
proceeds attributable to first sales by a creator or minter
and aggregate gross proceeds attributable to specified
NFT sales that are not first sales. File one Form 1099-DA
to report the specified NFT sales attributable to first sales
and file another Form 1099-DA to report specified NFT
sales that are not attributable to first sales.
A broker reporting sales using an optional method is
not required to report acquisition dates or basis amounts,
even if the digital assets are covered securities.
A broker reporting sales of digital assets using an
optional method for reporting sales of qualifying
stablecoins or specified NFTs must complete all
unnumbered boxes on Form 1099-DA except the CUSIP
(Committee on Uniform Security Identification
Procedures) number box, which may be left blank if there
is no applicable number. Additionally,
• A broker reporting sales of qualifying stablecoins using
the optional reporting method for qualifying stablecoins
may leave boxes 1d, 1e, 1g, 1h, 1i, 2, 3a, 3b, 5, 6, 8, 9,
12a, and 12b blank.
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• A broker reporting sales of specified NFTs using the
optional reporting method of specified NFTs may leave
boxes 1d, 1e, 1g, 1h, 1i, 2, 3a, 3b, 5, 6, 8, 9, 12a, and 12b
blank.
• For sales of qualifying stablecoins reported using the
optional reporting method for qualifying stablecoins, enter
the total gross proceeds for all designated sales of the
qualifying stablecoin reported on this form in box 1f.
• For reporting sales of specified NFTs that are not
attributable to first sales using the optional reporting
method, enter the total aggregate gross proceeds from all
sales of the specified NFTs, other than the amount of
aggregate gross proceeds attributable to first sales by a
creator or minter, in box 1f.
• For reporting sales of specified NFTs that are
attributable to first sales by a creator or minter using the
optional reporting method for specified NFTs, enter the
total aggregate gross proceeds from these first sales in
box 11c and leave box 1f blank.
Substitute statements. Brokers that use substitute
statements may be able to report customer transactions
(digital asset sales (Form 1099-DA), securities sales
(Form 1099-B, Proceeds From Broker and Barter
Exchange Transactions), interest earned (Forms
1099-INT, Interest Income, and 1099-OID, Original Issue
Discount), dividends (Form 1099-DIV, Dividends and
Distributions), and foreign taxes paid (Forms 1099-DIV
and 1099-INT)) for the year on a single substitute
statement. For details, see Pub. 1179, General Rules and
Specifications for Substitute Forms 1096, 1098, 1099,
5498, and Certain Other Information Returns, at IRS.gov/
Pub1179, which provides the rules for substitute forms.

Information Required on the Form
1099-DA
For sales effected after 2025. For sales of digital
assets you effect as a broker for customers after 2025,
you must complete all unnumbered boxes on Form
1099-DA except the CUSIP number box, which may be left
blank if there is no applicable number. Additionally:
• Boxes 1a, 1b, and 1c must be completed.
• Box 1e must be completed, except when you are
reporting using an optional reporting method.
• Box 1f must be completed, except when box 11c is
completed.
• Boxes 3b, 4, 5, 7, 8, 9, 14, 15, and 16 are completed
only if applicable.
• If the digital assets were sold because of the exercise of
an option, complete box 3a.
• If the digital asset(s) sold, exchanged, or otherwise
disposed of were transferred to a broker providing
custodial services, provide the number of units sold that
had been transferred to the broker in box 12a and the date
of transfer-in in box 12b.
• If the digital asset sold, exchanged, or otherwise
disposed of is a covered security and is not reported using
an optional method, boxes 1d, 1g, 2, and 6 must be
completed, and boxes 1h and 1i must be completed if
applicable.
• If the digital asset sold, exchanged, or otherwise
disposed of is a noncovered security, you may check
box 9. Do not check box 9 if reporting the sale of a
4

covered security. If you check box 9 for a sale of a digital
asset that is a noncovered security, you do not have to
complete boxes 1d, 1g, 1h, 1i, and 6, and you do not have
to check box 2.
• If you check box 9 and choose to complete boxes 1d,
1g, 1h (if applicable), 1i (if applicable), 2, and 6 for a
noncovered security voluntarily, you are not subject to
penalties under section 6721 or 6722 for failure to report
or furnish this information correctly. If you do not check
box 9, you are subject to penalties under sections 6721
and 6722 for failure to report or furnish the information in
boxes 1d, 1g, 1h (if applicable), 1i (if applicable), 2, and 6
correctly even if you are reporting the sale of a
noncovered security.
Example for reporting of sales effected after 2025.
You are a broker that provides custodial services. Using
your services, customer Bill bought units of digital asset
ABC in April 2022, April 2026, and August 2026. The
digital asset ABC units bought in 2026 are covered
securities. The digital asset ABC units bought in April
2022 are noncovered securities. In June 2027, Bill sells all
of the digital asset ABC units in a single transaction. Even
though the digital asset ABC units were sold in a single
transaction, report the sale on three separate 2027 Forms
1099-DA: one for digital asset ABC units bought in August
2026 with short-term gain or loss, one for digital asset
ABC units bought in April 2026 with long-term gain or loss,
and a third for the digital asset ABC units bought in April
2022 (the noncovered securities). For the April 2022 units,
if you voluntarily report the basis information (that is, the
information in boxes 1d, 1g, 1h (if applicable), 1i (if
applicable), 2, and 6) of the noncovered securities and
check box 9, you will not be subject to penalties under
section 6721 or 6722 for failing to report or furnish this
information correctly. Alternatively, if you voluntarily report
the basis information of the units bought in April 2022, you
may report the entire sale on only two separate 2027
Forms 1099-DA by combining the report of the
noncovered securities bought in April 2022 with the report
of the covered securities bought in April 2026 (reporting
long-term gain or loss). If you combine this reporting,
however, you may not check box 9, and you will be subject
to penalties under sections 6721 and 6722 for failure to
report basis correctly even if you are reporting the sale of
a noncovered security.
Widely held fixed investment trusts (WHFITs). Report
a disposition of digital assets held by the WHFIT. For
digital asset sales, trustees and middlemen must report
the amount of non-pro rata partial principal payments (as
defined in Regulations section 1.671-5(b)(13)) and trust
sales proceeds (as defined in Regulations section
1.671-5(b)(21)) attributable to a trust interest holder (TIH)
for the calendar year on Form 1099-DA or Form 1099-B.
Report a disposition of an interest held by a TIH in a
WHFIT, including a redemption of an interest held by a
TIH in a WHFIT, on Form 1099-B. If a WHFIT sells digital
assets in connection with a trust interest redemption, file
only one Form 1099 with respect to the redemption.
To determine the amount of each item of proceeds to
be reported on Form 1099-DA, see, generally, Regulations
section 1.671-5. If the trustee provides WHFIT information
using the safe harbor rules in Regulations section
Instructions for Form 1099-DA (2026)

1.671-5(f)(1), the trustee or middleman must determine
the amounts reported on Forms 1099 under Regulations
section 1.671-5(f)(2).
Check box 9 and leave boxes 1d, 1g, 1h, 1i, 2, and 6
blank if:
• You are a broker reporting the sale of a digital asset
held by a WHFIT to the WHFIT trustee, or
• You are a trustee or middleman of a WHFIT reporting
non-pro rata partial principal payments and trust sale
proceeds for digital asset transactions to a TIH.
Requirement to furnish a tax information statement
to TIH. A tax information statement that includes the
information provided to the IRS on Form 1099-DA, as well
as additional information identified in Regulations section
1.671-5(e), must be provided to TIHs. The written tax
information statement furnished to the TIH for 2026 is due
on or before March 15, 2027. The amount of an item of a
trust expense that is attributable to a TIH must be included
on the tax information statement provided to the TIH and
is not required to be included in box 5 on the Form
1099-DIV. See Regulations section 1.671-5(e) for a
complete list of the items of information that must be
included in the statement to the TIH.
Acquisition of control or substantial change in capital structure. File Form 1099-DA for each customer who
received cash, stock, or other property from a corporation
that you know, or have reason to know based on readily
available information, must recognize gain under section
367(a) from the transfer of a digital asset that is also stock
to a foreign corporation in an acquisition of control or
substantial change in capital structure reportable on Form
8806, Information Return for Acquisition of Control or
Substantial Change in Capital Structure. For more
information, see Form 8806.
Readily available information includes information from
a clearing organization, such as the Depository Trust
Company (DTC), or from information published on
IRS.gov.
You are not required to file a second Form 1099-DA for
a customer who received only cash for a digital asset that
is also stock transferred in an acquisition of control if you
report the cash as proceeds from a sale on another Form
1099-DA. You are also not required to file Form 1099-DA
for a customer who is an exempt recipient (under
Regulations section 1.6045-1(c)(3)(i) or 1.6043-4(b)(5)).
For a list of exempt recipients, see the Instructions for
Form 1099-CAP, Changes in Corporate Control and
Capital Structure.
Enter in box 1f the aggregate amount of cash and the
fair market value (FMV) of any digital assets, services, and
other property received in exchange for digital assets held
in your custody.
In box 1b, show the name of the digital asset you held
that was exchanged.
Leave the other numbered boxes and the CUSIP
number box blank unless you are required to file a Form
1099-DA to report proceeds you paid to the customer from
the acquisition of control or substantial change in capital
structure and you choose to file and furnish one Form
1099-DA for amounts reported under both Regulations
sections 1.6045-1 and 1.6045-3. If you choose to combine
Instructions for Form 1099-DA (2026)

the reporting for both, do not combine other transactions
the customer may have had during the year with the
reporting of the acquisition of control or change in capital
structure. Also, in box 1g, report the total basis of the
customer's digital assets. Do not enter an amount in
box 1g that is greater than the amount entered in box 1f.
Foreign currency. If the purchase amount or sales
proceeds are paid in foreign currency, you must report the
amount of foreign currency in U.S. dollars. Generally, you
must determine the reportable amount (other than
amounts representing accrued interest or original issue
discount) as of the date you receive, credit, or make the
payment, whichever applies, at the spot rate or by
following a reasonable spot rate convention, such as a
month-end spot rate or a monthly average spot rate. When
reporting the purchase or sale of a digital asset traded on
an established securities market in a foreign currency, you
must determine the U.S. dollar amounts to be reported
(other than amounts representing accrued interest or
original interest discount) as the settlement date, at the
spot rate or by following a reasonable spot rate
convention. See Regulations section 1.6045-1(d)(8).
Generally, payments of foreign currency amounts
representing accrued interest or original issue discount
must be translated using the average rate for the interest
accrual period, although certain customers may elect to
translate such amounts using the spot rate on the last day
of the interest accrual period. See Regulations sections
1.988-2(b)(2) and 1.6045-1(n)(4)(v).
Coordination with other broker reporting requirements. If you have effected a sale of a digital asset that
is also a security for which the Form 1099-B would be
required (dual classification asset), you should generally
file Form 1099-DA and not Form 1099-B. There are three
exceptions to the requirement to report a sale of a dual
classification asset on a Form 1099-DA. See Regulations
section 1.6045-1(c)(8).
1. For transactions involving dual classification assets
that constitute section 1256 contracts, including regulated
futures contracts or section 1256 option contracts on
digital assets, you should report the section 1256 contract
transactions on an aggregate basis on Form 1099-B. In
this case, you may either report all section 1256 contracts
on an aggregate basis on a single Form 1099-B or you
may use a separate Form 1099-B for each type of
contract. For more information, see the Instructions for
Form 1099-B. However, in the event delivery of the
underlying digital asset is made with respect to a section
1256 contract, which includes a regulated futures
contract, a section 1256 option contract, or a section 1256
foreign currency contract, report the delivery of the
underlying digital asset as a sale on Form 1099-DA.
2. For transactions involving dual classification assets
that are digital assets solely because their sales are
cleared or settled on a limited-access regulated network,
as described in Regulations section 1.6045-1(c)(8)(iii)(B),
you should file Form 1099-B and not Form 1099-DA. If the
limited-access regulated network ceases to meet the
requirements described in Regulations section
1.6045-1(c)(8)(iii)(B), you may continue to file Form
1099-B for transactions effected during the calendar year
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in which the limited-access regulated network ceases to
meet the requirements.
3. For transactions involving dual classification assets
that are shares in money market funds, you should not file
Form 1099-DA and you are not required to file, but may
file, Form 1099-B.
Dual classification assets that are tokenized
securities. For transactions involving dual classification
assets that are tokenized securities, you should file Form
1099-DA and not Form 1099-B. A tokenized security is a
dual classification asset that provides the holder with an
interest in another asset that is a security that is otherwise
subject to reporting on Form 1099-B. Additionally, a
tokenized security is an asset, the offer and sale of which
is registered with the U.S. Securities and Exchange
Commission, other than as an asset treated as a security
for securities law purposes solely as an investment
contract. See Regulations section 1.6045-1(c)(8)(i)(D).
For transactions involving a tokenized security, enter the
CUSIP number of the security or other applicable
identifying number; report the amount of accrued market
discount, if applicable, in box 1h; report the loss
disallowed due to a wash sale, if applicable, in box 1i; and,
if applicable, compute the average basis method if the
customer elects that method or you choose the average
basis method as your default method and the customer
does not give you any other instructions.
Rewards and staking payments. Do not report rewards
and staking payments on Form 1099-DA.
Partnership sale. Form 8308, Report of a Sale or
Exchange of Certain Partnership Interests, does not have
to be filed if, under section 6045, a return is required to be
filed by a broker on Form 1099-DA for the transfer of a
digital asset that represents the partnership interest.
Exceptions. Brokers are not required to, but may, file
Form 1099-DA for the following.
1. Sales for exempt recipients, including the following.
a. Charitable organizations.
b. IRAs.
c. Archer MSAs and health savings accounts (HSAs).
d. The United States or any state or a political
subdivision of the United States or any state.
e. Corporations. However, see Identifying a
corporation, later, for instructions about how to know
whether a customer is a corporation for this purpose. Also,
you must file Form 1099-DA for the sale of a covered
security (defined earlier) by an S corporation if the S
corporation acquired the covered security after 2012.
f. U.S. digital asset brokers. However, see Identifying
a U.S. digital asset broker, later, for instructions about how
to know whether a customer is a digital asset broker for
this purpose.
2. Sales initiated by financial institutions or by dealers
in securities.
3. Sales by custodians and trustees, provided the sale
is reported on a properly filed Form 1041, U.S. Income Tax
Return for Estates and Trusts.
4. Sales of digital assets that constitute foreign
currency issued by a foreign government or central bank
6

unless the sales are pursuant to a section 1256(g)(2)
foreign currency contract or a regulated futures contract
that requires delivery of that foreign currency.
5. Sales for exempt foreign persons, as defined in
Regulations section 1.6045-1(g)(4).
6. Grants or purchases of options, purchases due to
exercises of call options, or entering into contracts that
require delivery of personal property or an interest therein.
7. Until the Treasury Department and IRS issue further
guidance, Notice 2024-57 provides that brokers do not
have to file information returns on digital asset sales in the
following transactions:
a. Wrapping and unwrapping transactions;
b. Liquidity provider transactions;
c. Staking transactions;
d. Transactions described by digital asset market
participants as lending of digital assets;
e. Transactions described by digital asset market
participants as short sales of digital assets; and
f. Notional principal contract transactions.
This reporting exception does not apply to rewards or
other compensation earned by participants in these
transactions.
Identifying a corporation. For sales of digital assets
that are covered securities (defined earlier) that were
acquired after 2011, you cannot rely on Regulations
section 1.6049-4(c)(1)(ii)(A) to tell whether a customer is a
corporation. However, for sales of all digital assets, you
can treat a customer as an exempt recipient if one of the
following statements is true.
1. The name of the customer contains the term
“insurance company,” “indemnity company,” “reinsurance
company,” or “assurance company.”
2. The name of the customer indicates it is an entity
listed as a corporation under Regulations section
301.7701-2(b)(8)(i).
3. You receive a properly completed exemption
certificate on Form W-9, Request for Taxpayer
Identification Number and Certification, that shows the
customer is not an S corporation.
4. You receive a Form W-8, Certificate of Foreign
Status, described in Regulations section 1.1441-1(e)(2)(i)
that includes a certification that the person whose name is
on the form is a foreign corporation.
Identifying a U.S. digital asset broker. For sales of
digital assets, you can treat a customer as an exempt
recipient if you receive a properly completed exemption
certification on Form W-9 that shows the customer is a
U.S. digital asset broker. Until the Form W-9 includes the
appropriate exemption certification, see Notice 2024-56
for information regarding how a U.S. digital asset broker
can document that another broker is a U.S. digital asset
broker.
Exemption certificate. A broker may require an exempt
recipient to file a properly completed Form W-9 or similar
form. A broker may treat an exempt recipient that fails to

Instructions for Form 1099-DA (2026)

do so as a recipient that is not exempt. See part J in the
current Pub. 1099.

Statements to Recipients

If you are required to file Form 1099-DA, you must provide
a statement to the recipient. For more information about
the requirement to furnish a statement to the recipient, see
part M in the current Pub. 1099.

Specific Instructions
Truncating recipient's taxpayer identification number
(TIN) on payee statements. Pursuant to Regulations
section 301.6109-4, all filers of this form may truncate a
recipient’s TIN (social security number (SSN), individual
taxpayer identification number (ITIN), adoption taxpayer
identification number (ATIN), or employer identification
number (EIN)) on payee statements. Truncation is not
allowed on any documents the filer files with the IRS. A
filer's TIN may not be truncated on any form. See part J in
the current Pub. 1099.

Box 1a. Code for Digital Asset

Enter the nine alphanumeric characters of the digital token
identifier issued by the Digital Token Identifier Foundation
(DTIF). See https://dtif.org/registry-search. If the digital
asset is not registered with DTIF, enter “999999999”.
If you are reporting sales using the optional reporting
method for qualifying stablecoins, enter the digital token
identifier for the qualifying stablecoin.
If you are reporting sales using the optional reporting
method for specified NFTs, enter “999999999”.

Box 1b. Name of Digital Asset

Enter the full name of the digital asset for which the
amounts are being reported. If you entered a DTIF digital
token identifier in box 1a, enter the name that matches the
DTIF registration.
If you are reporting sales of qualifying stablecoins using
the optional reporting method for qualifying stablecoins,
enter the name of the qualifying stablecoin.

For a list of country codes, go to IRS.gov/CountryCodes.

If you are reporting sales of specified NFTs using the
optional reporting method for specified NFTs, enter
“Specified NFTs”.

Account Number

Box 1c. Number of Units

Country

The account number is required if you have multiple
accounts for a recipient for whom you are filing more than
one Form 1099-DA. Additionally, the IRS encourages you
to designate an account number for all Forms 1099-DA
that you file. See part L in the current Pub. 1099. The
account number requested here is the number assigned
by the broker to a customer, not the customer's wallet
address.

CUSIP Number

For transactional reporting by brokers of a tokenized
security under Regulations section 1.6045-1(c)(8)(i)(D)(1),
enter the CUSIP number or other applicable identifying
number of the digital asset.

Applicable Checkbox on Form 8949

Use this box to enter a one-letter code from the following
list that will assist the recipient in reporting the transaction
on Form 8949 and/or Schedule D (Form 1040).
Code G. This code indicates a short-term transaction
for which the cost or other basis is being reported to the
IRS.
Code H. This code indicates a short-term transaction
for which the cost or other basis is not being reported to
the IRS.
Code J. This code indicates a long-term transaction
for which the cost or other basis is being reported to the
IRS.
Code K. This code indicates a long-term transaction
for which the cost or other basis is not being reported to
the IRS.
Code Y. Use this code to report a transaction if you
cannot determine whether the recipient should check box
H or box K on Form 8949 because the holding period is
unknown.

Instructions for Form 1099-DA (2026)

Enter the number of digital asset units sold, exchanged, or
otherwise disposed of in the transaction to 18 decimal
places.
If you are reporting sales of qualifying stablecoins using
the optional reporting method for qualifying stablecoins,
enter the aggregate number of qualifying stablecoin units.
If you are reporting sales of specified NFTs using the
optional reporting method for specified NFTs, enter the
aggregate number of specified NFT units.

Box 1d. Date Acquired

Enter the acquisition date of the digital asset sold in
MM/DD/YYYY format. For example, if the acquisition date
is May 24, 2026, enter 05/24/2026. Leave this box blank if:
• The digital assets sold were acquired on a variety of
dates,
• You check box 9 and you do not know the acquisition
date or you choose to not complete box 1d, or
• You are reporting sales of qualifying stablecoins or
specified NFTs using an optional reporting method.

Box 1e. Date Sold or Disposed

Enter the date of the digital asset sale in MM/DD/YYYY
format.

If you are reporting sales of qualifying stablecoins or
specified NFTs using an optional reporting method, you
may leave box 1e blank.

Box 1f. Proceeds

Enter the gross proceeds from the sale of digital assets.
Show a loss, such as one from a closing transaction on a
written option or forward contract, as a negative amount
by enclosing it in parentheses. Total proceeds may include
cash, the value of services, digital assets, or other
property received in exchange for the disposed digital
assets.
7

You must reduce the proceeds by digital asset
transaction costs, including transaction fees,
commissions, and transfer taxes related to the sale.
For digital assets sold because of the exercise of an
option granted or acquired before 2014, you may, but are
not required to, take into account option premiums in
determining gross proceeds if that is consistent with your
books. For digital assets sold because of the exercise of
an option granted after 2013 or for the treatment of an
option granted or acquired after 2013, see Regulations
section 1.6045-1(m) for details.
If you reduce gross proceeds by option premiums,
check “Net proceeds” in box 3a. Otherwise, check “Gross
proceeds” in box 3a.
For reporting sales of specified NFTs using the optional
reporting method, if you are reporting aggregate gross
proceeds attributable to first sales by a creator or minter
and aggregate gross proceeds attributable to specified
NFT sales that are not first sales, file two Forms 1099-DA.
File one Form 1099-DA to report the specified NFT sales
attributable to first sales, and file another Form 1099-DA to
report specified NFT sales that are not attributable to first
sales. In addition, for sales of specified NFTs attributable
to first sales by a creator or minter, report those sales in
box 11c and leave box 1f blank.

Box 1g. Cost or Other Basis

Enter the adjusted basis of any digital asset sold unless
the digital asset is not a covered security and you check
box 9 and choose not to complete box 1g. If you check
box 9 and are not reporting basis, leave box 1g blank.
Enter -0- in box 1g only if the digital asset sold actually
had a basis of zero.
In the case of an exchange of digital assets, the digital
asset transaction costs paid by the taxpayer to effect the
exchange are allocable generally to the disposition of the
transferred digital assets for purposes of determining
basis. In the case of a sale of digital assets in exchange
for other digital assets differing materially in kind or extent,
for which the acquired digital assets are withheld to pay
the digital asset transaction costs to effect the original
transaction, the total digital asset transaction costs paid
by the taxpayer to effect both the original transaction and
any dispositions of digital assets to pay such costs are
allocable exclusively to the original transaction. See
Regulations sections 1.1001-7 and 1.1012-1(h)(2)(ii)(C).
If you are reporting sales of qualifying stablecoins or
specified NFTs using an optional reporting method, you
may leave box 1g blank.
Identification of digital assets. If the customer has
acquired digital assets on different dates or at different
prices and sells less than the entire position in the digital
assets, report the sale according to the customer's
adequate and timely identification of the digital assets to
be sold. If no identification is provided at or prior to the
time of the sale, you generally must first report the sale of
the earliest units of the digital asset purchased by the
customer. You may take into account customer-provided
acquisition information, described in Regulations section
1.6045-1(d)(2)(ii)(B)(4), for purposes of determining when
a customer purchased a digital asset. If you do not take
8

customer-provided acquisition information into account for
that purpose, treat digital assets transferred into the
customer's account as acquired as of the date and time of
the transfer.
Under current law, brokers may use customer-provided
acquisition information solely for lot-selection purposes
and not for reporting basis or acquisition dates.
Average basis method. The average basis method is
only available for digital assets that are also a tokenized
security. The security has to be one for which the average
basis method is permitted under section 1012(c) or (d).

Box 1h. Accrued Market Discount

For digital assets that are covered securities and also debt
instruments for federal income tax purposes, enter the
amount of accrued market discount in box 1h.

Box 1i. Wash Sale Loss Disallowed
Wash sales. Losses from wash sales of tokenized
securities must be reported. See Regulations section
1.6045-1(c)(8)(i)(D). For such tokenized securities treated
as stock or securities under section 1091, if both the sale
and purchase transactions occur in the same account with
respect to such tokenized securities with the same CUSIP
number, you must report the amount of the disallowed loss
under section 1091 in box 1i. However, you are permitted,
but are not required, to report in box 1i any other loss for a
tokenized security that is disallowed under section 1091.
For example, you may report a disallowed loss under
section 1091 in box 1i even though a digital asset that is
also a stock or security is sold in one account and
repurchased in a different account. Increase the adjusted
basis of the acquired digital asset by the amount of the
disallowed loss reported in box 1i.
You also do not have to apply the wash sale rules if:
• The purchased digital asset is transferred to another
account before the wash sale,
• The purchased digital asset was purchased in another
account and later transferred into the account from which
the digital asset was sold,
• The digital assets are treated as held in separate
accounts, or
• The customer has notified you in writing (including in an
electronic format) that the customer has made a valid and
timely mark-to-market election under section 475 and
identified the account from which tokenized securities
were sold as containing only securities subject to the
election.
For more details, see Regulations section 1.6045-1(d)
(6)(iii).
Example. In September 2026, your customer Alex buys
for $1,000 100 units of digital asset ABC that is a
tokenized security treated as stock or securities under
section 1091. In October 2026, Alex sells the 100 units for
$600. Within 30 days of the sale, Alex buys 75 units of
digital asset ABC with the same CUSIP number in the
same account. Since Alex’s loss is $400 ($1,000 minus
$600), but the loss on 75 units is disallowed, Alex’s
disallowed loss is $300. Report the $600 gross proceeds
from the sale in box 1f, $1,000 basis in box 1g, and $300
wash sale loss disallowed in box 1i. The $300 disallowed
Instructions for Form 1099-DA (2026)

loss is added to Alex’s basis in the newly purchased 75
units.

Box 2. Check if Basis Reported to IRS

Check this box if:
• You are not checking box 9, or
• You are checking box 9 but are reporting basis to the
IRS in box 1g anyway.
Do not check this box if you are reporting sales of
qualifying stablecoins or specified NFTs using an optional
reporting method.

Box 3a. Reported to IRS

See Box 1f. Proceeds, earlier.

Box 3b. Check if Proceeds Are From a Qualified
Opportunity Fund (QOF)

Check the “QOF” box if you are reporting a disposition of
an interest in a QOF.

Box 4. Federal Income Tax Withheld

Enter backup withholding. For example, persons who
have not furnished their TIN to you in the manner required
are subject to withholding on certain amounts required to
be reported on this form. This is called backup
withholding. For more information on backup withholding,
including the rate, see part N in the current Pub. 1099 and
go to IRS.gov/Form1099DA. For information on
transitional relief from backup withholding, see Notice
2025-33.
Use Form W-9 to request the TIN of the recipient. For
foreign recipients, request the recipient instead complete
the appropriate Form W-8. See the Instructions for the
Requester of Forms W-8BEN, W-8BEN-E, W-8ECI,
W-8EXP, and W-8IMY and Regulations section
1.6045-1(g)(4) for when a broker may treat a customer as
an exempt foreign person.

Box 5. Check if Loss Is Not Allowed Based on
Amount in 1f

See Acquisition of control or substantial change in capital
structure, earlier.

Box 6. Gain or Loss

If the digital assets sold, exchanged, or otherwise
disposed of are covered securities, or if they are
noncovered securities and you check box 9 but choose to
complete box 6, determine whether the gain or loss is
short-term or long-term under section 1222, and whether
any portion of the gain or loss is ordinary. In making the
determination, you must do the following.
• Apply the normal rules for property acquired from a
decedent to the digital assets.
• Apply the normal rules for property acquired as a gift to
the digital assets.
• If a customer acquired digital assets that are stock or
securities that caused a loss from a sale of other digital
assets that are stock or securities to be nondeductible
under section 1091, use the rules in section 1223(3) to
determine the holding period of the acquired digital
assets.
Instructions for Form 1099-DA (2026)

Except as provided below, in addition to checking the
applicable short-term or long-term box, you are required to
check the “Ordinary” checkbox if all or a portion of the
gain or loss may be ordinary. You may not report both
short-term and long-term gain or loss on the same Form
1099-DA.
For transactions that are denominated in a currency
other than the U.S. dollar, brokers must check the
"Ordinary" checkbox because these transactions may be
section 988 transactions to the customer. Because a
customer may make an election to treat gains and losses
on certain section 988 transactions as capital, the broker
must also check the short-term or long-term box to
indicate whether any portion of the gain or loss may be
short-term or long-term.
You are not required to consider other transactions,
elections, or events occurring outside the account when
determining whether the gain or loss on the sale is
short-term or long-term.

Box 7. Check if Only Cash Proceeds Were Paid
in the Transaction
Check this box if only cash (that is, U.S. dollars or any
convertible foreign currency issued by a government or
central bank) proceeds were paid in the transaction.

Check this box even if you have combined the reporting
of an underlying transaction with the report of the
transaction to pay broker fees, as described in General
Reporting, earlier.

Box 8. Check if Broker Relied on
Customer-Provided Acquisition Information

Check this box if you receive or previously received
customer-provided acquisition information to identify
which digital assets of a type were sold, exchanged, or
otherwise disposed of, even if the customer-provided
acquisition information was not used for the particular
digital asset lot reported on this form. If the customer
previously sold, exchanged, or otherwise disposed of all
the digital assets for which they provided that
customer-provided acquisition information, you do not
need to check this box.

Box 9. Check if Digital Asset Is a Noncovered
Security

You may check this box if reporting the sale of a
noncovered security. Do not check this box if reporting the
sale of a covered security.
If you check this box, you do not have to complete
boxes 1d, 1g, 1h, 1i, and 6, and you do not have to check
box 2. If you check box 9 and choose to complete boxes
1d, 1g, 1h (if applicable), 1i (if applicable), 2, and 6 for a
noncovered security voluntarily, you are not subject to
penalties under sections 6721 and 6722 for failure to
report or furnish the information correctly. For returns filed
for sales after 2025, you are subject to penalties under
section 6721 and 6722 for failure to report or furnish the
information in boxes 1d, 1g, 1h (if applicable), 1i (if
applicable), 2, and 6 correctly if you do not check box 9
even if you are reporting the sale of a noncovered security.
9

Do not check this box if you are reporting sales of
qualifying stablecoins or specified NFTs using an optional
reporting method.

Box 10. Reserved

Reserved for future use.

Box 11a. Reason Digital Asset Is Eligible for an
Optional Reporting Method

If you are reporting sales of a digital asset eligible for an
optional reporting method, check the appropriate box, if
applicable, to indicate which type of digital asset is being
reported. If you check “Qualifying stablecoins,” you must
complete box 11b. If you check “Specified NFTs,” you
must complete box 11b and, if applicable, box 11c. If you
do not check one of these boxes, you do not have to
complete boxes 11b or 11c.

Box 11b. Number of Transactions

If you are using the optional reporting method for reporting
the designated sales of qualifying stablecoins or specified
NFTs, enter the number of transactions reported on this
form.

Box 11c. Proceeds From a Primary Sale

If you are reporting the sale of specified NFTs, enter the
aggregate gross proceeds attributable to first sales by a
creator or minter. Do not enter the aggregate gross
proceeds attributable to the first sales by a creator or
minter in box 1f.

Box 12a. Number of Units Transferred in

If you are reporting the sale of digital asset units that were
transferred into a custodial account, enter the number of
units to 18 decimal places.
If you are reporting sales of qualifying stablecoins or
specified NFTs using an optional reporting method, you
may leave box 12a blank.

10

Box 12b. Transfer-in Date

If digital assets were transferred into a custodial account,
enter the date of such transfer-in in MM/DD/YYYY format.
Leave this box blank if the digital assets were transferred
in on a variety of dates.
If you are reporting sales of qualifying stablecoins or
specified NFTs using an optional reporting method, you
may leave box 12b blank.

Box 13. Reserved

Reserved for future use.

Boxes 14 Through 16. State Information

These boxes may be used by filers who participate in the
Combined Federal/State Filing Program and/or who are
required to file paper copies of this form with a state tax
department. See Pub. 1220, Specifications for Electronic
Filing of Form 1097, 1098, 1099, 3921, 3922, 5498, and
W-2G, for more information regarding the Combined
Federal/State Filing Program. These boxes are provided
for your convenience only and need not be completed for
the IRS. Use the state information boxes to report
payments for up to two states. Keep the information for
each state separated by the dash line. If you withheld
state income tax on this payment, you may enter it in
box 16. In box 14, enter the abbreviated name of the state.
In box 15, enter the filer's state identification number. The
state number is the filer's identification number assigned
by the individual state.
If a state tax department requires that you send them a
paper copy of this form, use Copy 1 to provide information
to the state tax department. Give Copy 2 to the recipient
for use in filing the recipient's state income tax return.

Instructions for Form 1099-DA (2026)