1099-DA - Overview

The Form 1099-DA is used to report digital asset proceeds from broker transactions. A Form 1099-DA is required to be issued to the extent a recipient has any of the following in the tax year:

• Any taxable disposition of a digital asset, that is not a qualified stablecoin
  • This does not include transfers to another account owned by the same recipient
  • There is a threshold of $600 or more to the extent the issuer of the Form 1099-DA is a Processor of Digital Asset Payments, and does not meet the definition of a digital asset broker.
• $10,000 or more in proceeds from dispositions of qualified stablecoins
  • This does not include dispositions of qualified stablecoin for another digital asset that is not a qualified stablecoin
• $600 or more in proceeds from the sale of NFTs

Although the IRS version of the form requires a separate PDF/form for each disposition, Taxbit offers a consolidated version of the PDF, which includes all of a recipient’s dispositions.

Note that some accounts may be considered exempt based on their US tax classification. (e.g. Corporation).

Deadlines

See below for the deadlines relevant to the Form 1099-DA:

• February 15th is the last day to deliver forms to recipients
• March 31st is the last day to submit filings

If a deadline falls on a weekend or holiday, it will be extended to the next business day. A 30-day extension is generally available for both of the deadlines above. 

Resources

Please see the 1099-DA – IRS Form & Instructions for official IRS information.

Please refer to the 1099-DA - Data Requirements guide for detailed data requirements.

Below are the applicable CSV Ingestion Templates:

• Account Owner/Account CSV Template
• Transactions CSV Template
• 1099-DA Form Data CSV Template – Only required if not sending transactions

A sample form is also attached to the bottom of this article for your reference.