Recipient Instructions

From Official IRS Form 1099-DA

Notes for Landscape Form

Broker Reporting

Brokers must report proceeds from (and in some cases, basis for) digital asset dispositions to you and the IRS on Form 1099-DA. You may be required to recognize gain from these dispositions of digital assets.

Change in Corporation Control or Capital Structure

Reporting is also required when your broker knows or has reason to know that a corporation in which you own a digital asset that is also stock has had a reportable change in control or capital structure. You may be required to recognize gain from the receipt of cash, services, digital assets, or other property that was exchanged for a digital asset that is also the corporation’s stock.

Question on Page 1 of Form 1040

If you received a Form 1099-DA, you generally sold, exchanged, or otherwise disposed of a financial interest in a digital asset and should check the “Yes” box next to the question on page 1 of Form 1040.

Recipient’s taxpayer identification number (TIN)

For your protection, this form may show only the last four digits of your TIN (social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN)). However, the issuer has reported your complete TIN to the IRS.

Account number

May show an account or other unique number the filer assigned to distinguish your account.

CUSIP number

Shows the CUSIP (Committee on Uniform Security Identification Procedures) number or other applicable identifying number, if applicable to the digital assets disposed.

Applicable checkbox on Form 8949

Indicates where to report this transaction on Form 8949 and Schedule D (Form 1040), and which checkbox is applicable. See the instructions for your Schedule D (Form 1040) and/or Form 8949.

Applicable checkbox is shown in "AC" column

Box 1a

Shows the Digital Token Identification Foundation (DTIF) code associated with the name shown in box 1b for which the amounts are being reported.

Box 1b

Shows the name of the digital asset.

Box 1c

Shows the number of digital asset units sold, exchanged, or otherwise disposed of in the transaction.

Box 1d

Shows the original date the assets were acquired. This box may be blank if box 9 is checked or if the digital assets sold, exchanged, or otherwise disposed of were acquired on a variety of dates or if the date was unknown to the filer.

Box 1e

Shows the sale or disposition date.

Box 1f

Shows the total proceeds from the digital asset transaction. Total proceeds may include cash, the value of services, digital assets, or other property received in exchange for the disposed digital assets. This amount does not include the gross proceeds from the first sale of any specified NFTs you created or minted, which are reported in box 11c.

Box 1g

Shows the aggregate cost or other basis of the digital assets sold, exchanged, or otherwise disposed. If box 9 is checked, box 1g may be blank if the cost or other basis was unknown to the filer, or the digital assets were acquired prior to 2026. If box 1g is blank, you will need to determine your basis based on your own books and records. If box 1g has any entry, including zero, the information within that box has been reported to the IRS as basis.

Box 1h

Shows the amount of accrued market discount for digital assets that are also debt instruments for tax purposes. For details on market discount, see the Schedule D (Form 1040) instructions, the Instructions for Form 8949, and Pub. 550. If box 9 is checked, box 1h may be blank.

Box 1i

Shows the amount of nondeductible loss in a wash sale transaction involving digital assets that are also stock or securities for tax purposes. For details on wash sales, see the Schedule D (Form 1040) instructions, the Instructions for Form 8949, and Pub. 550. If box 9 is checked, box 1i may be blank.

Box 2

If checked, the basis in box 1g has been reported to the IRS and either the short-term or the long-term gain or loss box in box 6 will be checked. If box 2 is checked on Form(s) 1099-DA and NO adjustment is required, see the instructions for your Schedule D (Form 1040), as you may be able to report your transaction directly on Schedule D (Form 1040). If the “Ordinary” box in box 6 is checked, an adjustment may be required.

"X" is shown in "BR" column.

Box 3a

If the exercise of a digital asset that is also a non-compensatory option resulted in a sale of a digital asset, a checked “Net proceeds” box indicates that the amount in box 1f was adjusted for option premium. A checked “Gross proceeds” box indicates that the amount in box 1f was not adjusted for option premium.

Box 3b

If checked, proceeds are from a transaction involving a Qualified Opportunity Fund (QOF).

"QOF" is shown in Type column, second row.

Box 4

Shows backup withholding. Generally, a filer must backup withhold if you did not furnish your TIN to the filer. See Form W-9 for information on backup withholding. Include this amount on your income tax return as tax withheld.

Box 5

If checked, you cannot take a loss on your tax return based on gross proceeds from a reportable change in control or capital structure reported in box 1f. See the Form 8949 and Schedule D (Form 1040) instructions. The broker should advise you of any losses on a separate statement.

"LNA" is shown in Gain or Loss column, second row.

Box 6

The short-term and long-term boxes pertain to short-term gain or loss and long-term gain or loss. If the “Ordinary” gain or loss box is checked, your digital asset may be subject to special rules. See the Instructions for Form 8949, Pub. 550, or Pub. 1212 for more details on whether there are any special rules or adjustments that might apply to your digital asset. If box 9 is checked, box 6 may be blank.

Box 7

If checked, you only received cash proceeds in the transaction.

"Cash" is shown in Type column

Box 8

If checked, you provided acquisition information to your broker and they relied on it when identifying which digital asset was sold, exchanged, or disposed.

"CP" is shown in the Cost column, second row.

Box 9

If checked, the digital asset sold was a noncovered security and boxes 1d, 1g, 1h, 1i, 2, and 6 may be blank.

"X" is shown in "NC" column.

Box 10

Reserved for future use.

Box 11a

If checked, the digital assets sold were qualifying stablecoins or specified non-fungible tokens (NFTs) and the information reported in box 1f represents the aggregate gross proceeds from those sales for the year.

"QS" or "NFT" is shown in Type column, second row.

Box 11b

Shows the number of transactions if the information reported on this form represents more than one transaction.

Box 11c

Shows the gross proceeds from the first sale of any specified NFTs you created or minted.

Box 12a

Shows the number of digital asset units transferred into an account at the broker.

Box 12b

Shows the date of any transfer-in.

Box 13

Reserved for future use.

Boxes 14 - 16

Show state(s)/local income tax information.

Future developments

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

Free File Program

Go to www.irs.gov/FreeFile to see if you qualify for no-cost online federal tax preparation, e-filing, and direct deposit or payment options.

For Landscape Version of Form 1099-DA

This substitute Form 1099-DA was designed by the Financial Data Exchange standard-setting organization (FDX). For more information about FDX standards for US income tax, see https://financialdataexchange.org/us-tax.

The form is intended to comply with the requirements of IRS Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns.

This portable document format file may have the form data embedded in FDX-standard JSON format. Tax software applications may be able to import this data.