Compliance

Digital Assets and Forms 1099-DA: What Taxpayers & Brokers Need to Know

New reporting requirements and proposed regulations for digital asset transactions will change how brokers furnish 1099-DA statements—and how taxpayers report gains.

By NomadicTax Research Team • 5-8 min read • April 2, 2026

## The evolving rules around Form 1099-DA Form 1099-DA, “Digital Asset Proceeds From Broker Transactions,” is now law, with final regulations applying in stages. From January 1, 2025, **gross proceeds** from digital asset sales must be reported. **Basis** reporting begins in many cases on **January 1, 2026**. ([irs.gov](https://www.irs.gov/newsroom/final-regulations-and-related-irs-guidance-for-reporting-by-brokers-on-sales-and-exchanges-of-digital-assets?utm_source=openai)) ### Proposed regulations for electronic delivery On March 5, 2026, the IRS and Treasury issued proposed rules (REG-105064-25) allowing brokers to furnish 1099-DA statements electronically under certain conditions—without offering paper copies as an option—if customers affirmatively consent. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-to-make-it-easier-for-digital-asset-brokers-to-provide-1099-da-statements-electronically?utm_source=openai)) This aims to reduce burden for brokers and adapt to digital-native asset trading. #### Key features of the proposed rules: - **Qualified electronic delivery**: Either via email attachments or posting to a platform with notifications. - **Positive consent required**: Customer must unambiguously agree (e.g. check a box); hardware/software requirements must be disclosed. - **Enhanced notices**: Customers must be made aware statements are available; if email undeliverable, a paper fallback may be required. - **Effective date**: Regulations would apply to statements furnished on or after **January 1, 2027**. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-to-make-it-easier-for-digital-asset-brokers-to-provide-1099-da-statements-electronically?utm_source=openai)) ### De minimis exceptions & corrections - Brokers processing payments (PDAPs) have a **$600 de minimis threshold**; if total PDAP sales per customer are below that, reporting isn’t required; once above, all sales must be reported. ([irs.gov](https://www.irs.gov/about-irs/corrections-to-the-2025-instructions-for-form-1099-da-de-minimis-rules-for-reporting-certain-sales-of-digital-assets-and-optional-reporting-methods?utm_source=openai)) - Corrections to 2025 Instructions address how stablecoins, NFTs, and other asset types qualify under optional reporting methods. ([irs.gov](https://www.irs.gov/about-irs/corrections-to-the-2025-instructions-for-form-1099-da-de-minimis-rules-for-reporting-certain-sales-of-digital-assets-and-optional-reporting-methods?utm_source=openai)) ## Implications for taxpayers (and digital nomads) - **Know your basis**: To report gains/losses you need cost basis; especially for assets held long-term or in foreign exchanges, keep meticulous records. - **Check brokers’ consent practices**: If your broker shifts to electronic-only delivery, be sure you consent (or switch brokers). - **Report even without Form 1099-DA**: If you traded digital assets via foreign brokers or peer-to-peer without documentation, you still must report income, gains, losses. ([irs.gov](https://www.irs.gov/businesses/understanding-your-form-1099-da?utm_source=openai)) ### Example scenario A U.S. remote worker holds crypto assets, sold some in mid-2025, some in 2026. Broker issues 1099-DA showing proceeds for 2025 sales in 2026. Basis reporting starts for certain items in 2026 so gains may be clearer. If the worker uses a foreign exchange not issuing 1099-DA, still reports them manually. ## Actionable tips - Review IRS final regulations & proposed regulations for 1099-DA—watch for updates in late 2026. - Maintain complete records: dates, cost, fair market value—especially for donations or gifts involving digital assets. - Consult tax professional experienced with digital assets—mistakes early can trigger penalties and missed deductions. ## Conclusion Digital assets’ tax landscape is rapidly changing. Form 1099-DA brings in new reporting obligations, and upcoming proposals offer relief for brokers—while creating new responsibilities for people transacting with cryptocurrency, stablecoins, NFTs. Be proactive in understanding how it applies to you.