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.
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.
Data Requirements
See below for all of the required data elements for completing Form 1099-DA reporting.
Filing Entity
The legal entity responsible for the issuing forms will be the filing entity. The information listed below must be submitted through the Taxbit Dashboard.
For more information on Filer setup, please refer to this guide: Filer Setup
|
Field Name |
Required |
|
Name |
Required |
|
Address |
Required |
|
Tax Residency |
Required |
|
US TIN |
Required |
|
Contact Phone Number |
Required |
Please note: If there are multiple filers, please ensure that you are using the correct filer ID for the associated account(s).
Account Owner / Account
For ingestion purposes, the only data point required to create/update an Account Owner is the Account ID. This allows you to add all of your users to the Dashboard, even while you may still be collecting additional information. There will be reports available in the Dashboard to let you know if something is missing for an Account that is eligible for a tax form.
For more information on formatting the Account Owner/Account CSV templates, please refer to this guide: Standard Account Owner/Account - CSV Ingestion Template Guide
The following table, however, summarizes the required fields needed to complete the Form 1099-DA.
|
Field Name |
Required |
|
Account Owner ID |
Only required if you have Account Owners with multiple Accounts |
|
Account ID |
Required |
|
Name |
Required |
|
Joint Account Name |
If Applicable |
|
Address |
Required |
|
Tax Residency |
Presumed US if unavailable |
|
TIN |
Required |
|
Filer ID |
Only required if you have multiple Filers |
Note that there are other fields on the Account Owner / Account model that are not listed here, as they are not required for 1099-DA reporting.
Transactions or Form Data
For account activity, we can either collect raw transaction data, in which case Taxbit will complete the cost basis calculations to determine the ultimate data to report on the Form 1099. If you are not sending Transactions, then we also offer the option of sending us Form Data, which would include the final amounts that go on the form.
Transactions
For the Form 1099-DA, all of the transaction types we support are relevant, provided you support them on your platform. Note that not all transaction types are directly reported on the Form 1099-DA, however, in order to properly track cost basis and lots, all movement of digital assets in and out of the Account is typically needed.
|
Field Name |
Required |
|
Account ID |
Required |
|
Transaction ID |
Required |
|
Date and Time |
Required |
|
Transaction Type & Subtype |
Required See here for all available transaction types and subtypes |
|
Received Asset Quantity, Currency, and Rate/USD Value |
Only required for certain transaction types |
|
Sent Asset Quantity, Currency, and Rate/USD Value |
Only required for certain transaction types |
|
Fee Asset Quantity, Currency, and Rate/USD Value |
If Applicable |
Form Data
To the extent transactions are not being provided, the following data points must be provided for Form Data ingestion.
For stablecoins specifically, you can either complete the aggregation on your own by providing a single row with the aggregated amounts, or include separate line items for each disposition, similar to non-stablecoins, and Taxbit will complete the aggregation.
Note that a single Account may have multiple Form Data rows, one for each lot disposition.
|
Field Name |
Non-Stablecoin DA |
Aggregate Reporting |
||
|
Non-Covered |
Covered |
Stablecoin |
NFT |
|
|
Account ID |
Required |
Required |
Required |
Required |
|
Standard code for digital asset (e.g., BTC) |
Required |
Required |
Required |
Not Applicable |
|
[DTIF] Code of digital asset (Box 1a) |
Required |
Required |
Required |
Not Applicable |
|
Name of digital asset (Box 1b) |
Required |
Required |
Required |
Not Applicable |
|
Security is Noncovered (Box 9) |
Required: TRUE |
Required: FALSE |
Not Applicable |
Not Applicable |
|
Number of units (Box 1c) |
Required |
Required |
Required |
Required |
|
Date Acquired (Box 1d) |
If Applicable |
Required |
Not Applicable |
Not Applicable |
|
Date Sold Or Disposed (Box 1e) |
Required |
Required |
Not Applicable |
Not Applicable |
|
Proceeds (Box 1f) |
Required |
Required |
Required |
Required |
|
Cost Or Other Basis (Box 1g) |
If Applicable |
Required |
Not Applicable |
Not Applicable |
|
Gross Proceeds or Net Proceeds Reported To IRS (Box 3a) |
Required |
Required |
Not Applicable |
Not Applicable |
|
Ordinary, Short-Term or Long-Term Gain/Loss (Box 6) |
If Applicable |
Required |
Not Applicable |
Not Applicable |
|
Proceeds are only from cash (Box 7) |
If Applicable |
If Applicable |
Not Applicable |
Not Applicable |
|
Broker relied on customer-provided acquisition information (Box 8) |
If Applicable |
If Applicable |
Not Applicable |
Not Applicable |
|
Lot Disposed has customer-provided acquisition information |
If Applicable |
If Applicable |
Not Applicable |
Not Applicable |
|
Number of units transferred in (Box 12a) |
If Applicable |
If Applicable |
Not Applicable |
Not Applicable |
|
Transferred in date (Box 12b) |
If Applicable |
If Applicable |
Not Applicable |
Not Applicable |
|
Gross proceeds is aggregated for qualifying stablecoins or specified NFTs (Box 11a) |
Not Applicable |
Not Applicable |
Required: Stablecoin |
Required: NFT |
|
Non-Designated |
Not Applicable |
Not Applicable |
If Applicable |
Not Applicable |
|
Number of aggregated transactions (Box 11b) |
Not Applicable |
Not Applicable |
Required |
Required |
|
NFT proceeds attributable to first sales by creator or minter (Box 11c) |
Not Applicable |
Not Applicable |
Not Applicable |
If Applicable |
|
Federal Income Tax Withheld (Box 4) |
If Applicable |
|||
|
State (Box 14) |
Only required if there is state withholding, or the income is applicable to a state that is different from the address state |
|||
|
State Id (Box 15) |
If Applicable |
|||
|
State Tax Withheld (Box 16) |
If Applicable |
|||