The IRS Is Getting More Information About Your Crypto: What Form 1099-DA Means in 2026

The IRS Is Getting More Information About Your Crypto: What Form 1099-DA Means in 2026

If you buy or sell crypto, there's an important tax change you should know about in 2026.

The IRS now has a tax form specifically for digital assets called Form 1099-DA, and crypto brokers are beginning to report more information about customers' transactions directly to the IRS.

For everyday crypto investors, the message is simple:

Crypto is becoming much more integrated into the same tax-reporting system used for traditional investments.

What Is Form 1099-DA?

Form 1099-DA stands for Digital Asset Proceeds From Broker Transactions.

Think of it as a crypto-specific tax reporting form.

When certain crypto transactions occur through a broker covered by the rules, the broker reports transaction information to both the investor and the IRS.

Gross-proceeds reporting generally began with transactions occurring in 2025, meaning investors started receiving the new forms during the 2026 tax season. (irs.gov)

But 2026 brings another important change.

The IRS Can Start Getting Cost-Basis Information

Your cost basis is essentially what you paid for an investment, adjusted when required under tax rules.

For example:

You buy crypto for $5,000.

Later you sell it for $7,000.

Your simplified gain would be:

$7,000 - $5,000 = $2,000

Beginning with applicable digital assets acquired on or after January 1, 2026, brokers have additional basis-reporting responsibilities when those assets qualify as covered securities. 

That's important because the IRS could potentially receive information about what you received from the sale and your reported cost basis.

It's Not Just Selling Crypto for Dollars

One of the biggest mistakes crypto investors make is assuming taxes only matter when they cash out into dollars.

That's not necessarily true.

The IRS generally treats digital assets as property for federal tax purposes. A disposal can potentially include exchanging one cryptocurrency for another or using cryptocurrency to purchase goods or services.

So this:

Crypto A → Crypto B

can potentially create a taxable event even though you never transferred dollars to your bank.

Stablecoins Count Too

Stablecoins aren't outside the tax system simply because they're designed to maintain a $1 value.

The IRS specifically includes stablecoins within its definition of digital assets.

A transaction involving a stablecoin may result in little or no gain or loss depending on the circumstances, but that doesn't mean stablecoins are automatically ignored for tax purposes.

What If I Don't Receive a 1099-DA?

This may be the most important thing to understand.

Not receiving Form 1099-DA doesn't automatically mean you don't have to report your crypto activity.

The IRS explicitly says taxpayers must report applicable digital-asset income, gains and losses whether or not they receive Form 1099-DA. 

That's especially important for people moving crypto between exchanges, wallets and decentralized applications.

You should still maintain your own records.

Why This Matters

As CEO of Market Tycoon, I think the bigger story isn't the tax form itself.

It's what the form represents.

Crypto is becoming increasingly integrated into the traditional U.S. financial system.

As regulation and reporting increase, investors should expect cryptocurrency transactions to receive increasingly similar tax-reporting treatment to other investments.

That doesn't mean every crypto transaction creates a tax bill.

But it does mean investors should stop assuming their crypto activity is invisible simply because it happens on a blockchain.

What Should Crypto Investors Do?

Keep records of your purchases, sales, swaps, transaction fees and wallet transfers.

Know your cost basis.

And if you receive Form 1099-DA, compare it with your own records.

Most importantly:

Don't assume "no tax form" means "no taxes."

Form 1099-DA gives the IRS another source of information about digital-asset transactions, but investors remain responsible for accurately reporting their own taxable activity.

The Bottom Line

2026 represents another major step toward bringing cryptocurrency into the traditional tax-reporting system.

Brokers are reporting digital-asset transactions through Form 1099-DA, and cost-basis reporting is expanding for applicable assets.

For everyday crypto investors, the takeaway is straightforward:

The IRS is getting more information about crypto transactions, so good recordkeeping matters more than ever.

Crypto may operate on decentralized networks, but when it comes to U.S. taxes, investors still have reporting responsibilities.

Interested In Crypto Investing?

 Learn about Market Tycoon's crypto Tytron (symbol: TYTR) here.

This article is for educational and informational purposes only and does not constitute tax, legal, financial or investment advice.