IRS 1099-DA crypto reporting requirements take effect for the first time on Tax Day 2026, requiring every American who sold or traded digital assets in 2025 to account for those transactions, while Treasury reports 53 million filers already claimed new Trump administration exemptions.
Summary
- Form 1099-DA is now the IRS’s mandatory reporting form for 2025 digital asset transactions filed by brokers, though basis reporting remains voluntary for this first year, creating a gap crypto holders must bridge themselves.
- Treasury says 53 million Americans used new Trump-era exemptions including no tax on tips and overtime, car loan interest deductions, and Trump Accounts for children’s savings, with average refunds rising 11% to $3,462.
- IRS CEO Frank Bisignano testified to the Senate Finance Committee on Tax Day touting the Republican tax law’s implementation while Democrats focused on IRS data-sharing agreements with ICE.
IRS 1099-DA crypto obligations are real and unavoidable for the first time this filing season. The IRS’s first dedicated digital asset reporting form, a simplified version of an earlier draft that dropped requirements for wallet addresses and transaction IDs, went into mandatory use for brokers covering all 2025 digital asset transactions.
But 53 million Americans are also sitting down today to take advantage of a completely different set of tax changes, the Trump-era exemptions that have reshaped this year’s filing season.
For 2025 transactions, custodial brokers were required to send Form 1099-DA covering gross proceeds by February 17, 2026. The catch: basis reporting is voluntary for 2025. That means most 1099-DA forms do not include cost basis, and the IRS has been explicit: “taxpayers will have to calculate basis to determine their gain or loss.”
Crypto holders who treat their 1099-DA as a complete document and do not reconcile it against their own transaction records face significant mismatch risk when the IRS begins cross-referencing broker data. Every taxpayer must also answer the digital asset question on Form 1040, yes or no, regardless of whether they received a 1099-DA. Those who skip it are answering incorrectly under penalty of perjury.
Investors who need to calculate their own gains and losses have a range of dedicated tracking tools available, as basis reconstruction across wallets, exchanges, DeFi positions, and staking activity falls entirely on the taxpayer this year.
The Broader Tax Day Picture
On the non-crypto side, Treasury says the 2026 filing season has set several records for new exemption uptake. More than 53 million filers claimed at least one new provision from the Republican tax law, including 6 million who claimed no tax on tips, along with take-up of no-tax treatment for certain car loan interest, senior deductions, and Trump Accounts, a children’s savings vehicle introduced in the bill.
Average refunds stand at $3,462, up 11% from last year’s $3,116. “People are getting refunds of $5,000, $8,000, $11,000 that they had no idea they were getting,” Trump told Fox Business on Wednesday.
The Political Backdrop
IRS CEO Frank Bisignano testified to the Senate Finance Committee on Tax Day, with his prepared remarks touting the agency’s implementation of the Republican tax law. Democrats shifted focus to IRS data-sharing agreements with ICE, raising concerns about confidential taxpayer information being routed to immigration enforcement. The IRS workforce has been reduced by 27% over the past year through DOGE-driven cuts.
For crypto holders, the administration’s posture matters beyond today. Starting with the 2026 tax year, mandatory basis reporting kicks in, meaning the 1099-DA compliance pressure only increases from here.
