The IRS has released the instructions for form 1099-DA for tax year 2026. These instructions are notable as 2025 was a transitional year for reporting this form, and the 2026 instructions are intended to be final instructions for the form.
Form 1099-DA reports the sale of digital assets, including cryptocurrency and NFT sales. Such sales must be reported on form 1099-DA annually. Form 1099-DA is reported on a per transaction basis, similar to form 1099-B, rather than on an annual aggregate basis.
The most consequential change is the removal of the transitional basis-reporting waiver that applied to 2025 sales. Brokers were not required to report basis information for any sales in 2025. For 2026 sales, basis information is now mandatory for covered assets (acquired in 2025 and forward). Brokers that do not check box 9 for noncovered security sales are subject to penalties for failure to report basis correctly.
In connection with this change, all 2025-specific guidance has been removed from the instructions. The instructions now address only the post-2025 reporting regime.
The 2026 instructions also introduce de minimis rules for certain sales. Briefly, sales by a processor of digital asset payments (PDAP) of $600 or less during a year, qualifying stablecoin sales of $10,000 or less, and sales of specified NFTs of $600 or less need not be reported on form 1099-DA.
To review the 1099-DA’s instructions, follow this link.
