Report gross proceeds from digital asset sales a broker effected for a customer. Tax year 2026 is the first reporting year.
The IRS is retiring FIRE. It accepts information returns until 3 p.m. ET on 19 November 2026, and from 1 January 2027 IRIS is the only electronic channel - including for prior-year returns and corrections. New Transmitter Control Codes are no longer issued through FIRE, so a TCC application now has to go through IRIS.
IRS noticeForm 1099-DA reports digital asset proceeds from broker transactions. The IRS defines a broker as "any person who, in the ordinary course of a trade or business, stands ready to effect sales of digital assets to be made by others", which covers custodial exchanges, hosted wallet providers, certain payment processors and some NFT marketplaces. Reporting applies to sales effected for customers after 2025, so tax year 2026 is the first year a 1099-DA is issued. Brokers report gross proceeds for every reportable sale, and cost basis as well where the digital asset is a covered security.
Filing threshold: No general threshold on broker sales. De minimis exceptions: $600 for payment processors, $10,000 for qualifying stablecoins, $600 for specified NFTs
Paper Filing
February 28
Electronic Filing
March 31
Recipient Copy
February 15
$60-$310 per form depending on how late; up to $630 for intentional disregard
2024 penalty tiers: $60/form (≤30 days late) → $130/form (31 days-Aug 1) → $310/form (after Aug 1) → $630/form (intentional disregard). Small business caps may apply.
| Box | Description |
|---|---|
| Boxes 1a-1c | Digital asset code, asset name, and units sold |
| Boxes 1d-1e | Date acquired and date sold |
| Box 1f | Proceeds, reduced by transaction costs |
| Box 1g | Cost basis |
| Boxes 1h-1i | Accrued market discount and wash sale loss disallowed |
| Boxes 2-6 | Basis reporting indicators and gain or loss classification |
| Boxes 7-9 | Cash-only flag, reliance on customer-provided information, and noncovered security indicator |
| Boxes 11a-11c | Optional reporting method details |
| Boxes 12a-12b | Transfer-in units and dates |
| Boxes 14-16 | State tax withheld, state identification number, and state income |
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It applies to sales a broker effected for customers after 2025, so tax year 2026 is the first reporting year. The first 1099-DA forms are furnished to recipients and filed with the IRS during the 2027 filing season.
The IRS definition is any person who, in the ordinary course of a trade or business, stands ready to effect sales of digital assets to be made by others. In practice that covers custodial exchanges, hosted wallet providers and some payment processors and NFT marketplaces. Generally only U.S. digital asset brokers report.
Yes. Processors of digital asset payments have a $600 exception, qualifying stablecoins a $10,000 exception, and specified NFTs a $600 exception. Ordinary broker sales have no general threshold.
Gross proceeds are always reported. Cost basis is reported where the digital asset is a covered security; boxes 2 through 6 carry the basis reporting indicators and the gain or loss classification.
Through IRIS. FIRE stops accepting information returns on 19 November 2026, and from 1 January 2027 IRIS is the only electronic channel - which is the same season the first 1099-DA forms are due, so there is no FIRE route for this form in practice.
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