The IRS is set to implement Form 1099-DA beginning with the 2025 tax year, requiring brokers to report digital asset transactions including cryptocurrency sales and exchanges. This new information return represents a significant expansion of federal reporting for the digital asset industry. Most states have yet to announce their positions on whether they will require 1099-DA filing.
Iowa has clarified it will not require Form 1099-DA filing, even when the form reflects state withholding. This represents a notable exception to Iowa’s standard practice of requiring 1099 forms that show Iowa withholding.
Iowa’s general W-2 and 1099 guidance, including the 1099-DA exception, can be found here.
