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Glossary

Form 1099-DA: broker reporting of digital asset sales

The US information return brokers use to report digital asset sales to the IRS and to customers.

Education onlyUnited Kingdom and United States

Definition. The US information return that digital asset brokers file for customer sales, with gross proceeds from 2025 and basis for covered units from 2026.

How it works

Form 1099-DA, Digital Asset Proceeds From Broker Transactions, is filed by brokers with the IRS and sent to customers. Under the IRS instructions, brokers report gross proceeds for sales of digital assets effected after 2024, and from 2026 they must also report basis for units that are covered securities. A covered security, for this form, is broadly a digital asset acquired after 2025 in an account where the broker provides custody and held there until the broker sells it. Units moved in from elsewhere are generally noncovered, so the broker may not know their basis.

Why it matters for a company

The 2026 instructions list corporations among the exempt recipients, so a broker may not issue a Form 1099-DA to a C corporation, though it may ask for documentation such as a Form W-9 to confirm the company's status. The instructions carve out S corporations: a broker must file for a sale of a covered security by an S corporation. LLCs taxed as partnerships or disregarded entities are not corporations for this purpose, so their position depends on how the broker classifies them.

Either way, the company's own records decide its tax. A Form 1099-DA, where one is issued, reports what the broker knows. It may show no basis for units transferred in, or proceeds without fees the company paid elsewhere. The company should reconcile any form it receives with its own lot records and keep the reconciliation with the return. Receiving no form does not mean there is nothing to report.

Example only, fictional. An LLC taxed as a partnership receives a Form 1099-DA showing proceeds for bitcoin it moved onto the exchange from its own multisig wallet, with basis blank. Its accountant uses the company's own lot records for basis and attaches a reconciliation to the workpapers.
United KingdomGo to United States

The UK does not use Form 1099-DA. From 1 January 2026, UK cryptoasset service providers collect customer and transaction details under the Cryptoasset Reporting Framework and report them to HMRC. See CARF.

For the dates, the exempt recipient rules and what a company should do with a form when it arrives, see Form 1099-DA for companies.

Common mistakes

Sources

Primary sources only. Each link was checked on 9 November 2026. Rules change, so confirm the current version with your adviser.

  1. IRSAbout Form 1099-DA, Digital Asset Proceeds From Broker Transactions
  2. IRSInstructions for Form 1099-DA (2026): covered securities, basis reporting and exempt recipients
  3. IRSUnderstanding your Form 1099-DA
  4. HMRCCRYPTO49000: Cryptoasset Reporting Framework
  5. HMRCCheck if you need to report cryptoasset data to HMRC (Cryptoasset Reporting Framework)
Education, not advice.

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