On June 18, 2025, the IRS released revised 2025 Instructions for Form 1099-DA (Digital Asset Proceeds from Broker Transactions). The updates provide detailed guidance for brokers electing to use the ‘optional reporting method’ to report aggregate sales of qualifying stablecoins or specified non-fungible tokens (NFTs) to customers.
Brokers are not required to report acquisition dates or basis amounts for covered securities if they use the optional reporting method. For qualifying stablecoins, a separate Form 1099-DA is required to report the aggregate of each type of stablecoin reported to a customer. For specified NFTs, brokers may report all NFT transactions for a customer on a single 1099-DA, except transactions for first sales of a specified NFT by a creator or minter, which must be reported on a separate form.
The updated instructions clarify these requirements for brokers using the optional reporting method:
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Complete Box 1a with ‘999999999’ for specified NFTs or the digital token identifier for qualifying stablecoins.
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Complete Box 1b (Name for digital asset) with ‘Specified NFTs’ or the name of the stablecoin.
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Box 1c (number of units) must contain the aggregate number of specified NFT units or qualifying stablecoin units.
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Brokers must report first sales of a specified NFT by a creator or minter on a separate 1099-DA. When reporting first sales of NFTs, Box 1f (proceeds) must be blank; for other NFT sales not attributable to first sales, Box 11c (primary sale proceeds) must be blank.
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Box 12a (number of units transferred into custodial account) and Box 12b (transfer-in date) were added to the list of boxes that are not required when using the optional reporting method.
The updated 2025 Instructions for Form 1099-DA can be found here.
