{"id":46,"date":"2026-10-20T11:13:22","date_gmt":"2026-10-20T11:13:22","guid":{"rendered":"https:\/\/sovos.com\/taxapedia\/?page_id=46"},"modified":"2026-10-20T11:34:59","modified_gmt":"2026-10-20T11:34:59","slug":"crypto-tax-compliance","status":"publish","type":"page","link":"https:\/\/sovos.com\/taxapedia\/solutions\/crypto-tax-compliance\/","title":{"rendered":"Form 1099-DA Compliance for Digital Asset Brokers"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"46\" class=\"elementor elementor-46\" data-elementor-post-type=\"page\">\n\t\t\t\t<div class=\"elementor-element elementor-element-60e7637 e-con e-atomic-element e-flexbox-base e-default-div e-60e7637-70ff24a \" data-id=\"60e7637\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"60e7637\" data-e-type=\"e-flexbox\" data-id=\"60e7637\">\n    \t\t<div class=\"elementor-element elementor-element-928ced7 elementor-widget elementor-widget-auto_breadcrumbs\" data-id=\"928ced7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"auto_breadcrumbs.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<nav class=\"aub-breadcrumbs\" aria-label=\"Breadcrumb\"><ol class=\"aub-list\"><li class=\"aub-item\"><a class=\"aub-link\" href=\"https:\/\/sovos.com\/taxapedia\/\">Home<\/a><span class=\"aub-sep\" aria-hidden=\"true\">\/<\/span><\/li><li class=\"aub-item\"><a class=\"aub-link\" href=\"https:\/\/sovos.com\/taxapedia\/wp-json\/\">Wp Json<\/a><span class=\"aub-sep\" aria-hidden=\"true\">\/<\/span><\/li><li class=\"aub-item\"><a class=\"aub-link\" href=\"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/\">Wp<\/a><span class=\"aub-sep\" aria-hidden=\"true\">\/<\/span><\/li><li class=\"aub-item\"><a class=\"aub-link\" href=\"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/v2\/\">V2<\/a><span class=\"aub-sep\" aria-hidden=\"true\">\/<\/span><\/li><li class=\"aub-item\"><a class=\"aub-link\" href=\"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/v2\/pages\/\">Pages<\/a><span class=\"aub-sep\" aria-hidden=\"true\">\/<\/span><\/li><li class=\"aub-item aub-current\"><span class=\"aub-text\" aria-current=\"page\">46<\/span><\/li><\/ol><\/nav><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"BreadcrumbList\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/sovos.com\/taxapedia\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Wp Json\",\"item\":\"https:\/\/sovos.com\/taxapedia\/wp-json\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Wp\",\"item\":\"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"V2\",\"item\":\"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/v2\/\"},{\"@type\":\"ListItem\",\"position\":5,\"name\":\"Pages\",\"item\":\"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/v2\/pages\/\"},{\"@type\":\"ListItem\",\"position\":6,\"name\":\"46\",\"item\":\"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/v2\/pages\/46\/\"}]}<\/script>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n<\/div>\n<div class=\"elementor-element elementor-element-eec223e e-con e-atomic-element e-flexbox-base e-default-div e-eec223e-45594eb \" data-id=\"eec223e\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"eec223e\" data-e-type=\"e-flexbox\" data-id=\"eec223e\">\n    <div class=\"elementor-element elementor-element-87e8aa8 e-con e-atomic-element e-flexbox-base e-default-div e-87e8aa8-f80f523 \" data-id=\"87e8aa8\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"87e8aa8\" data-e-type=\"e-flexbox\" data-id=\"87e8aa8\">\n    \t\t<div class=\"elementor-element elementor-element-9256416 elementor-widget elementor-widget-heading\" data-id=\"9256416\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">How do digital asset brokers comply with Form 1099-DA reporting?<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-43a2b4d elementor-widget__width-initial elementor-widget-mobile__width-inherit elementor-widget elementor-widget-text-editor\" data-id=\"43a2b4d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Custodial brokers must report each digital asset sale on Form 1099-DA, per transaction rather than as an annual total. Gross proceeds reporting applies to transactions effected on or after January 1, 2025, and cost basis reporting for covered securities from January 1, 2026. Sovos supports 1099-DA reporting on the Sovos Crypto Tax platform, filing through the IRS Information Returns Intake System.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-0899950 e-con-full e-flex e-con e-parent\" data-id=\"0899950\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t<div class=\"elementor-element elementor-element-6d55c20 e-con-full e-flex e-con e-child\" data-id=\"6d55c20\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-e273db5 elementor-widget elementor-widget-image\" data-id=\"e273db5\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"64\" height=\"64\" src=\"https:\/\/sovos.com\/taxapedia\/wp-content\/uploads\/2026\/10\/6d8c1a9b-f56d-42b0-aae7-d2279ac342fc.png\" class=\"attachment-large size-large wp-image-208\" alt=\"6d8c1a9b-f56d-42b0-aae7-d2279ac342fc\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-78ef9a4 e-con-full e-flex e-con e-child\" data-id=\"78ef9a4\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-03d7f34 elementor-widget elementor-widget-text-editor\" data-id=\"03d7f34\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tPublished By<br>\n<strong>Sovos<\/strong>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-68af8fb e-con-full e-flex e-con e-child\" data-id=\"68af8fb\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-01efdc6 elementor-widget elementor-widget-image\" data-id=\"01efdc6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"64\" height=\"64\" src=\"https:\/\/sovos.com\/taxapedia\/wp-content\/uploads\/2026\/10\/6d8c1a9b-f56d-42b0-aae7-d2279ac342fc.png\" class=\"attachment-large size-large wp-image-208\" alt=\"6d8c1a9b-f56d-42b0-aae7-d2279ac342fc\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-d2f324f e-con-full e-flex e-con e-child\" data-id=\"d2f324f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-02bb898 elementor-widget elementor-widget-text-editor\" data-id=\"02bb898\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tAs of\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-abb2767 elementor-widget elementor-widget-text-editor\" data-id=\"abb2767\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tOctober 20, 2026\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-81f53be e-con-full e-flex e-con e-child\" data-id=\"81f53be\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-977fe4e elementor-widget elementor-widget-image\" data-id=\"977fe4e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"64\" height=\"64\" src=\"https:\/\/sovos.com\/taxapedia\/wp-content\/uploads\/2026\/10\/72f4c884-23ff-4bd8-8813-2b02eb15e4a5.png\" class=\"attachment-full size-full wp-image-207\" alt=\"72f4c884-23ff-4bd8-8813-2b02eb15e4a5\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-009730e e-con-full e-flex e-con e-child\" data-id=\"009730e\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-ffb673c elementor-widget elementor-widget-text-editor\" data-id=\"ffb673c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tAuthor\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8a88182 elementor-widget elementor-widget-text-editor\" data-id=\"8a88182\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tMichael Parker\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7221340 elementor-widget elementor-widget-text-editor\" data-id=\"7221340\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\tDirector Brand and Communications, Sovos\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\n<\/div>\n<div class=\"elementor-element elementor-element-b4efa51 e-con e-atomic-element e-flexbox-base e-default-div e-b4efa51-0ec8e0c \" data-id=\"b4efa51\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"b4efa51\" data-e-type=\"e-flexbox\" data-id=\"b4efa51\">\n    \t\t\t<img decoding=\"async\" class=\"e-image-base e-default-img \" data-interaction-id=\"39bb51b\" data-e-type=\"widget\" data-id=\"39bb51b\" src=\"https:\/\/sovos.com\/wp-content\/uploads\/2026\/06\/Lines-Social-Responsibility-Hero-Graphic.svg\" alt=\"\"\/>\t\t\n<\/div>\n\n<\/div>\n<div class=\"elementor-element elementor-element-a3c2914 e-con e-atomic-element e-flexbox-base e-default-div e-a3c2914-7924627 \" data-id=\"a3c2914\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"a3c2914\" data-e-type=\"e-flexbox\" data-id=\"a3c2914\">\n    <div class=\"elementor-element elementor-element-93250a6 e-con e-atomic-element e-flexbox-base e-default-div e-93250a6-f0e445d \" data-id=\"93250a6\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"93250a6\" data-e-type=\"e-flexbox\" data-id=\"93250a6\">\n    \t\t<div class=\"elementor-element elementor-element-624c98e elementor-widget elementor-widget-html\" data-id=\"624c98e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t\t<style>\n.rounded-table {\n    \/* To make rounded corners work, we need to separate the borders *\/\n    border-collapse: separate; \n    border-spacing: 0;\n    width: 100%;\n    font-family: 'Montserrat', 'Inter', sans-serif;\n    \n    \/* Apply border and radius to the table itself *\/\n    border: 1px solid #ddd;\n    border-radius: 8px; \/* Adjust this value for more or less rounding *\/\n    \n    \/* This is crucial: it clips the children (cells) to the table's rounded corners *\/\n    overflow: hidden; \n    margin-left: 0px;\n}\n\n.rounded-table thead th {\n    background-color: #072448;\n    padding: 12px;\n    text-align: left;\n    font-weight: 600;\n    color: #ffffff;\n    font-size: 20px;\n    font-family: 'Montserrat', 'sans-serif';\n}\n\n.rounded-table tbody td {\n    padding: 12px;\n    border-top: 1px solid #ddd; \/* Only use top borders for rows *\/\n    font-size: 16px;\n    font-family: 'Inter', 'sans-serif';\n    color: #545e75;\n}\n\n.rounded-table tbody tr:hover {\n    background-color: #fafafa;\n}\n\n.rounded-table .file-name {\n \n    font-weight: 600;\n    color: #;\n}\n.bg-row{\n    background-color: #f2f2f2;\n}\n}\n\n<\/style>\n<table class=\"rounded-table\">\n    <thead>\n        <tr>\n            <th scope=\"col\">Best suited for<\/th>\n            <th scope=\"col\">Custodial exchanges, hosted wallet providers, digital asset payment processors and kiosk operators with US reporting obligations<\/th>\n        <\/tr>\n    <\/thead>\n    <tbody>\n        <tr>\n            <td class=\"file-name\">Forms<\/td>\n            <td>Form 1099-DA, Digital Asset Proceeds From Broker Transactions, alongside the wider 1099 series<\/td>\n        <\/tr>\n        <tr class=\"bg-row\">\n            <td class=\"file-name\">Filing channel<\/td>\n            <td>IRS Information Returns Intake System (IRIS). Form 1099-DA was built exclusively on IRIS and was never supported on the legacy FIRE system<\/td>\n        <\/tr>\n        <tr>\n            <td class=\"file-name\">Geographic scope<\/td>\n            <td>United States, federal and state filing<\/td>\n        <\/tr>\n        <tr class=\"bg-row\">\n            <td class=\"file-name\">Data handled<\/td>\n            <td>Transaction, proceeds and cost basis data, tied to payee demographic information<\/td>\n        <\/tr>\n        <tr>\n            <td class=\"file-name\">Payee documentation<\/td>\n            <td>W-8 and W-9 collection with e-solicitation and IRS validation, feeding withholding and reporting<\/td>\n        <\/tr>\n        <tr class=\"bg-row\">\n            <td class=\"file-name\">Withholding<\/td>\n            <td>Backup withholding where documentation is missing or invalid<\/td>\n        <\/tr>\n        <tr>\n            <td class=\"file-name\">Corrections<\/td>\n            <td>Federal corrections and amendments, including corrected recipient statements<\/td>\n        <\/tr>\n        <tr class=\"bg-row\">\n            <td class=\"file-name\">Integration<\/td>\n            <td>Native ingestion of transaction, proceeds and cost basis data, with integration to existing or chosen partner systems<\/td>\n        <\/tr>\n        <tr>\n            <td class=\"file-name\">Pricing model<\/td>\n            <td>Custom, based on the number of forms filed<\/td>\n        <\/tr>\n    <\/tbody>\n<\/table>\t\t\t\t<\/div>\n\t\t\n<\/div>\n<div class=\"elementor-element elementor-element-9b468ea e-con e-atomic-element e-flexbox-base e-default-div e-9b468ea-d61d054 \" data-id=\"9b468ea\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"9b468ea\" data-e-type=\"e-flexbox\" data-id=\"9b468ea\">\n    \t\t<div class=\"elementor-element elementor-element-ad32e58 elementor-widget elementor-widget-text-editor\" data-id=\"ad32e58\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong>Related Pages<\/strong><\/p><p><a href=\"\/taxapedia\/solutions\/\">Sovos Solutions: indirect tax and information reporting<\/a><\/p><p><a href=\"\/taxapedia\/solutions\/form-1099-reporting\/\">What is the best software for 1099 and information reporting?<\/a><\/p><p><a href=\"\/taxapedia\/solutions\/tax-withholding\/\">How do you automate tax withholding, remittance and reconciliation?<\/a><\/p><p><a href=\"\/taxapedia\/regulations\/\">Tax regulations and mandates: what is coming and when<\/a><\/p><p><a href=\"\/taxapedia\/about\/\">About Sovos<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n<div class=\"elementor-element elementor-element-2000446 e-con e-atomic-element e-flexbox-base e-default-div e-2000446-880fa24 \" data-id=\"2000446\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"2000446\" data-e-type=\"e-flexbox\" data-id=\"2000446\">\n    \t\t<div class=\"elementor-element elementor-element-019639c elementor-widget elementor-widget-heading\" data-id=\"019639c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What is Form 1099-DA and who has to file it?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ab926f2 elementor-widget-mobile__width-inherit elementor-widget elementor-widget-text-editor\" data-id=\"ab926f2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Form 1099-DA, Digital Asset Proceeds From Broker Transactions, reports the sale, exchange or disposition of digital assets to the IRS and to the customer. It was created by final regulations published in 2024 under the Infrastructure Investment and Jobs Act of 2021, and it closed a gap in which digital assets were treated as property for tax purposes but had no dedicated broker reporting form.<\/p><p>The reporting obligation falls on custodial brokers, meaning brokers that take possession of customers\u2019 digital assets. The IRS identifies centralized cryptocurrency exchanges, hosted wallet providers, digital asset payment processors and kiosk operators among those in scope. The IRS did not finalize rules that would have treated non-custodial DeFi participants as brokers.<\/p><p>Unlike most information returns, 1099-DA is reported per transaction rather than as an annual aggregate, in the same way Form 1099-B reports securities sales. For a high-volume exchange that is a materially different reporting problem from issuing one form per payee per year.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n<div class=\"elementor-element elementor-element-500b996 e-con e-atomic-element e-flexbox-base e-default-div e-500b996-d0d196c \" data-id=\"500b996\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"500b996\" data-e-type=\"e-flexbox\" data-id=\"500b996\">\n    <div class=\"elementor-element elementor-element-6693862 e-con e-atomic-element e-flexbox-base e-default-div e-6693862-857e7b0 \" data-id=\"6693862\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"6693862\" data-e-type=\"e-flexbox\" data-id=\"6693862\">\n    \t\t<div class=\"elementor-element elementor-element-c3d156e elementor-widget elementor-widget-heading\" data-id=\"c3d156e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What changed for tax year 2026?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-34f530f elementor-widget elementor-widget-text-editor\" data-id=\"34f530f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The regulations phase the obligation in over two years, and tax year 2026 is where the transition relief ends.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eb00508 elementor-widget elementor-widget-html\" data-id=\"eb00508\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t\t<style>\n.rounded-table {\n    \/* To make rounded corners work, we need to separate the borders *\/\n    border-collapse: separate; \n    border-spacing: 0;\n    width: 100%;\n    font-family: 'Montserrat', 'Inter', sans-serif;\n    \n    \/* Apply border and radius to the table itself *\/\n    border: 1px solid #ddd;\n    border-radius: 8px; \/* Adjust this value for more or less rounding *\/\n    \n    \/* This is crucial: it clips the children (cells) to the table's rounded corners *\/\n    overflow: hidden; \n    margin-left: 0px;\n}\n\n.rounded-table thead th {\n    background-color: #072448;\n    padding: 12px;\n    text-align: left;\n    font-weight: 600;\n    color: #ffffff;\n    font-size: 20px;\n    font-family: 'Montserrat', 'sans-serif';\n}\n\n.rounded-table tbody td {\n    padding: 12px;\n    border-top: 1px solid #ddd; \/* Only use top borders for rows *\/\n    font-size: 16px;\n    font-family: 'Inter', 'sans-serif';\n    color: #545e75;\n}\n\n.rounded-table tbody tr:hover {\n    background-color: #fafafa;\n}\n\n.rounded-table .file-name {\n \n    font-weight: 600;\n    color: #;\n}\n.bg-row{\n    background-color: #f2f2f2;\n}\n}\n\n<\/style>\n<table class=\"rounded-table\">\n    <thead>\n        <tr>\n            <th scope=\"col\">Tax year<\/th>\n            <th scope=\"col\">What brokers must report<\/th>\n        <\/tr>\n    <\/thead>\n    <tbody>\n        <tr>\n            <td class=\"file-name\">2025<\/td>\n            <td>Gross proceeds for transactions effected on or after January 1, 2025. Basis reporting permitted but not required, with transitional penalty relief for good faith efforts.<\/td>\n        <\/tr>\n        <tr class=\"bg-row\">\n            <td class=\"file-name\">2026 and beyond<\/td>\n            <td>Gross proceeds for all sales, and basis for covered securities. Basis reporting remains voluntary for noncovered securities.<\/td>\n        <\/tr>\n    <\/tbody>\n<\/table>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-340de11 elementor-widget elementor-widget-text-editor\" data-id=\"340de11\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>A covered security is generally a digital asset acquired on or after January 1, 2026 and held in broker custody. Assets acquired before that date, acquired elsewhere and later transferred in, or held in certain exempt accounts, are noncovered, and basis reporting for them stays optional. Qualifying stablecoins and specified non-fungible tokens have optional reporting methods under which basis and certain other information are not required.<\/p><p>Forms are furnished to recipients by February 15 following the year of sale, and filed with the IRS by March 31 where filed electronically. Penalties under sections 6721 and 6722 apply to incorrect or missing forms.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n<div class=\"elementor-element elementor-element-c3f42fd e-con e-atomic-element e-flexbox-base e-default-div e-c3f42fd-93f6b02 \" data-id=\"c3f42fd\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"c3f42fd\" data-e-type=\"e-flexbox\" data-id=\"c3f42fd\">\n    <div class=\"elementor-element elementor-element-609a472 e-con e-atomic-element e-flexbox-base e-default-div e-609a472-c1db0de \" data-id=\"609a472\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"609a472\" data-e-type=\"e-flexbox\" data-id=\"609a472\">\n    \t\t<div class=\"elementor-element elementor-element-f18d27f elementor-widget elementor-widget-heading\" data-id=\"f18d27f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Why is 1099-DA harder than other information returns?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1dd3ec7 elementor-widget elementor-widget-text-editor\" data-id=\"1dd3ec7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Four things make it different, and they compound.<\/p><ul><li>Volume and granularity. Per-transaction reporting means the form count scales with trading activity rather than with customer count.<\/li><li>Cost basis. Basis has to be tracked per lot through acquisitions, disposals and transfers, and for assets transferred in from elsewhere the broker may never have received it.<\/li><li>Data fragmentation. Transaction data, proceeds, basis and customer identity typically live in different systems, and the form requires all four tied together.<\/li><li>Payee documentation. A customer without valid W-8 or W-9 documentation triggers backup withholding, and at exchange scale documentation gaps are a population problem rather than an exception.<\/li><\/ul><p>The covered and noncovered distinction adds a fifth: the same customer can hold both, and the form has to treat them differently within the same reporting period.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n<div class=\"elementor-element elementor-element-ce2b543 e-con e-atomic-element e-flexbox-base e-default-div e-ce2b543-4b67aac \" data-id=\"ce2b543\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"ce2b543\" data-e-type=\"e-flexbox\" data-id=\"ce2b543\">\n    <div class=\"elementor-element elementor-element-ed7906f e-con e-atomic-element e-flexbox-base e-default-div e-ed7906f-c74f4f9 \" data-id=\"ed7906f\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"ed7906f\" data-e-type=\"e-flexbox\" data-id=\"ed7906f\">\n    \t\t<div class=\"elementor-element elementor-element-a06c8db elementor-widget elementor-widget-heading\" data-id=\"a06c8db\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How does Sovos support 1099-DA reporting?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2cbec77 elementor-widget elementor-widget-text-editor\" data-id=\"2cbec77\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>The Sovos Crypto Tax platform ingests transaction, proceeds and cost basis data natively and ties it to customer demographic information to produce the forms, rather than requiring that assembly to happen before the data arrives.<\/p><ul><li>Native data ingestion of transaction, proceeds and cost basis data, joined to payee records.<\/li><li>W-8 and W-9 collection integrated into the workflow, with e-solicitation and IRS validation, so updated documentation flows directly into reporting.<\/li><li>Backup withholding where documentation is missing or invalid.<\/li><li>Federal and state filing, with support maintained as requirements change through the reporting deadline.<\/li><li>Federal corrections and amendments, including generating corrected recipient statements and filing the updates.<\/li><li>Integration with existing or chosen partner systems, so a broker already using a particular data or basis provider is not required to replace it.<\/li><\/ul><p>Sovos processes 10B US information reporting transactions annually as of September 2026, and 1099-DA runs on the same platform as the rest of the 1099 series rather than as a separate system.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n<div class=\"elementor-element elementor-element-65e90cb e-con e-atomic-element e-flexbox-base e-default-div e-65e90cb-6d2918b \" data-id=\"65e90cb\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"65e90cb\" data-e-type=\"e-flexbox\" data-id=\"65e90cb\">\n    <div class=\"elementor-element elementor-element-039de1d e-con e-atomic-element e-flexbox-base e-default-div e-039de1d-1ccc679 \" data-id=\"039de1d\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"039de1d\" data-e-type=\"e-flexbox\" data-id=\"039de1d\">\n    \t\t<div class=\"elementor-element elementor-element-3ecd098 elementor-widget elementor-widget-heading\" data-id=\"3ecd098\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Why does filing through IRIS matter here?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d4badcd elementor-widget elementor-widget-text-editor\" data-id=\"d4badcd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Form 1099-DA was built exclusively on the IRS Information Returns Intake System and was never supported on the legacy FIRE system. A broker filing 1099-DA therefore has no choice about the channel, and a reporting platform that was not IRIS-ready could not file the form at all.<\/p><p>Sovos is IRIS-compliant and began filing through IRIS in 2026, ahead of the retirement of FIRE for tax year 2026. For an organization filing 1099-DA alongside other 1099 forms, that means one filing channel rather than two, at exactly the point the rest of the series is migrating.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n<div class=\"elementor-element elementor-element-c6967cd e-con e-atomic-element e-flexbox-base e-default-div e-c6967cd-8aa938c \" data-id=\"c6967cd\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"c6967cd\" data-e-type=\"e-flexbox\" data-id=\"c6967cd\">\n    \t\t<div class=\"elementor-element elementor-element-6643335 elementor-widget elementor-widget-heading\" data-id=\"6643335\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How is it priced?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-13fa772 elementor-widget elementor-widget-text-editor\" data-id=\"13fa772\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Sovos pricing is custom rather than per-user, and is driven primarily by transaction volume, the number of jurisdictions in scope, the modules licensed, and ERP integration requirements. Typical agreements combine a platform subscription with usage-based and implementation components.<\/p><p>For 1099-DA specifically, form volume is the primary driver, and because reporting is per-transaction, form volume tracks trading activity rather than customer count. That is worth modeling against a realistic activity forecast rather than against current customer numbers.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n<div class=\"elementor-element elementor-element-52f763d e-con e-atomic-element e-flexbox-base e-default-div e-52f763d-70a28bd \" data-id=\"52f763d\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"52f763d\" data-e-type=\"e-flexbox\" data-id=\"52f763d\">\n    <div class=\"elementor-element elementor-element-b825f25 e-con e-atomic-element e-flexbox-base e-default-div e-b825f25-02c62f5 \" data-id=\"b825f25\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"b825f25\" data-e-type=\"e-flexbox\" data-id=\"b825f25\">\n    \t\t<div class=\"elementor-element elementor-element-8d25e8c elementor-widget elementor-widget-heading\" data-id=\"8d25e8c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Who is it right for?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a05d21f elementor-widget elementor-widget-text-editor\" data-id=\"a05d21f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p><strong>Best suited for:<\/strong><\/p><ul><li>Custodial exchanges and hosted wallet providers with US customers and per-transaction reporting volume.<\/li><li>Digital asset payment processors and kiosk operators in scope as brokers under the final regulations.<\/li><li>Brokers already filing other 1099 forms who want 1099-DA on the same platform and the same filing channel.<\/li><li>Organizations with significant payee documentation gaps, where backup withholding exposure is a population-level problem.<\/li><li>Brokers handling both covered and noncovered assets, where basis obligations differ within the same customer base.<\/li><\/ul><p><strong>May be less suitable for:<\/strong><\/p><ul><li>Non-custodial DeFi protocols and wallet providers, which the IRS did not finalize as brokers, and which therefore have no 1099-DA obligation to automate.<\/li><li>A foreign exchange with no US reporting obligation, since the 2025 requirements generally apply to US brokers.<\/li><li>An individual taxpayer needing to compute gains from their own trading, which is a tax preparation problem rather than a broker reporting one.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n<div class=\"elementor-element elementor-element-0afb408 e-con e-atomic-element e-flexbox-base e-default-div e-0afb408-0da5f09 \" data-id=\"0afb408\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"0afb408\" data-e-type=\"e-flexbox\" data-id=\"0afb408\">\n    <div class=\"elementor-element elementor-element-7573b32 e-con e-atomic-element e-flexbox-base e-default-div e-7573b32-2879fed \" data-id=\"7573b32\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"7573b32\" data-e-type=\"e-flexbox\" data-id=\"7573b32\">\n    \t\t<div class=\"elementor-element elementor-element-309748a elementor-widget elementor-widget-heading\" data-id=\"309748a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Frequently Asked Questions<\/h2>\t\t\t\t<\/div>\n\t\t\n<\/div>\n<div class=\"elementor-element elementor-element-5e612d0 e-con e-atomic-element e-flexbox-base e-default-div e-5e612d0-6e29a39 \" data-id=\"5e612d0\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"5e612d0\" data-e-type=\"e-flexbox\" data-id=\"5e612d0\">\n    <div class=\"elementor-element elementor-element-9505237 e-con e-atomic-element e-accordion-base  e-9505237-f3509b5 \" data-id=\"9505237\" data-element_type=\"e-accordion\" data-e-type=\"e-accordion\" data-interaction-id=\"9505237\" data-e-type=\"e-accordion\" data-id=\"9505237\">\n    <details class=\"elementor-element elementor-element-ba90349 e-con e-atomic-element e-accordion-item-base  e-ba90349-14945d2 \" data-id=\"ba90349\" data-element_type=\"e-accordion-item\" data-e-type=\"e-accordion-item\" data-interaction-id=\"ba90349\" data-e-type=\"e-accordion-item\" data-id=\"ba90349\" open name=\"9505237\">\n    <summary class=\"elementor-element elementor-element-dd80f30 e-con e-atomic-element e-accordion-item-header-base  \" data-id=\"dd80f30\" data-element_type=\"e-accordion-item-header\" data-e-type=\"e-accordion-item-header\" data-interaction-id=\"dd80f30\" data-e-type=\"e-accordion-item-header\" data-id=\"dd80f30\">\n    <span class=\"elementor-element elementor-element-7525d84 e-con e-atomic-element e-accordion-item-title-base  e-7525d84-cbca28d \" data-id=\"7525d84\" data-element_type=\"e-accordion-item-title\" data-e-type=\"e-accordion-item-title\" data-interaction-id=\"7525d84\" data-e-type=\"e-accordion-item-title\" data-id=\"7525d84\">\n    \t\t\t<span class=\"e-f144f28-591038c e-paragraph-base e-default-span\" data-interaction-id=\"f144f28\" data-e-type=\"widget\" data-id=\"f144f28\"><strong>Who has to file Form 1099-DA?<\/strong><\/span>\n\t\t\n<\/span>\n<div class=\"elementor-element elementor-element-3895aee e-con e-atomic-element e-accordion-item-icon-base  e-3895aee-c7c74e8 \" data-id=\"3895aee\" data-element_type=\"e-accordion-item-icon\" data-e-type=\"e-accordion-item-icon\" data-interaction-id=\"3895aee\" aria-hidden=\"true\" data-e-type=\"e-accordion-item-icon\" data-id=\"3895aee\">\n    \t\t\t<div class=\"e-svg-base e-default-div\" data-interaction-id=\"89d9614\" data-e-type=\"widget\" data-id=\"89d9614\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" style=\"width: 100%; height: 100%; overflow: unset;\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"currentColor\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M5.46967 9.21967C5.76256 8.92678 6.23744 8.92678 6.53033 9.21967L12 14.6893L17.4697 9.21967C17.7626 8.92678 18.2374 8.92678 18.5303 9.21967C18.8232 9.51256 18.8232 9.98744 18.5303 10.2803L12.5303 16.2803C12.2374 16.5732 11.7626 16.5732 11.4697 16.2803L5.46967 10.2803C5.17678 9.98744 5.17678 9.51256 5.46967 9.21967Z\" fill=\"currentColor\"><\/path><\/svg><\/div>\n\t\t\n<\/div>\n\n<\/summary>\n<div class=\"elementor-element elementor-element-dd5e66d e-con e-atomic-element e-accordion-item-content-base  \" data-id=\"dd5e66d\" data-element_type=\"e-accordion-item-content\" data-e-type=\"e-accordion-item-content\" data-interaction-id=\"dd5e66d\" data-e-type=\"e-accordion-item-content\" data-id=\"dd5e66d\">\n    \t\t<div class=\"elementor-element elementor-element-f7c3efe elementor-widget elementor-widget-text-editor\" data-id=\"f7c3efe\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Custodial brokers, meaning those that take possession of customers\u2019 digital assets. The IRS identifies centralized exchanges, hosted wallet providers, digital asset payment processors and kiosk operators among those in scope. Non-custodial DeFi participants were not finalized as brokers.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/details>\n<details class=\"elementor-element elementor-element-bdb1cb5 e-con e-atomic-element e-accordion-item-base  e-bdb1cb5-0f08354 \" data-id=\"bdb1cb5\" data-element_type=\"e-accordion-item\" data-e-type=\"e-accordion-item\" data-interaction-id=\"bdb1cb5\" data-e-type=\"e-accordion-item\" data-id=\"bdb1cb5\"  name=\"9505237\">\n    <summary class=\"elementor-element elementor-element-d458e49 e-con e-atomic-element e-accordion-item-header-base  \" data-id=\"d458e49\" data-element_type=\"e-accordion-item-header\" data-e-type=\"e-accordion-item-header\" data-interaction-id=\"d458e49\" data-e-type=\"e-accordion-item-header\" data-id=\"d458e49\">\n    <span class=\"elementor-element elementor-element-bffc252 e-con e-atomic-element e-accordion-item-title-base  \" data-id=\"bffc252\" data-element_type=\"e-accordion-item-title\" data-e-type=\"e-accordion-item-title\" data-interaction-id=\"bffc252\" data-e-type=\"e-accordion-item-title\" data-id=\"bffc252\">\n    \t\t\t<span class=\"e-1f27006-7db0e99 e-paragraph-base e-default-span\" data-interaction-id=\"1f27006\" data-e-type=\"widget\" data-id=\"1f27006\"><strong>When does cost basis reporting start?<\/strong><\/span>\n\t\t\n<\/span>\n<div class=\"elementor-element elementor-element-0397f90 e-con e-atomic-element e-accordion-item-icon-base  e-0397f90-cf6df94 \" data-id=\"0397f90\" data-element_type=\"e-accordion-item-icon\" data-e-type=\"e-accordion-item-icon\" data-interaction-id=\"0397f90\" aria-hidden=\"true\" data-e-type=\"e-accordion-item-icon\" data-id=\"0397f90\">\n    \t\t\t<div class=\"e-svg-base e-default-div\" data-interaction-id=\"b46ec9b\" data-e-type=\"widget\" data-id=\"b46ec9b\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" style=\"width: 100%; height: 100%; overflow: unset;\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"currentColor\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M5.46967 9.21967C5.76256 8.92678 6.23744 8.92678 6.53033 9.21967L12 14.6893L17.4697 9.21967C17.7626 8.92678 18.2374 8.92678 18.5303 9.21967C18.8232 9.51256 18.8232 9.98744 18.5303 10.2803L12.5303 16.2803C12.2374 16.5732 11.7626 16.5732 11.4697 16.2803L5.46967 10.2803C5.17678 9.98744 5.17678 9.51256 5.46967 9.21967Z\" fill=\"currentColor\"><\/path><\/svg><\/div>\n\t\t\n<\/div>\n\n<\/summary>\n<div class=\"elementor-element elementor-element-32a892f e-con e-atomic-element e-accordion-item-content-base  \" data-id=\"32a892f\" data-element_type=\"e-accordion-item-content\" data-e-type=\"e-accordion-item-content\" data-interaction-id=\"32a892f\" data-e-type=\"e-accordion-item-content\" data-id=\"32a892f\">\n    \t\t<div class=\"elementor-element elementor-element-da2ee0c elementor-widget elementor-widget-text-editor\" data-id=\"da2ee0c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>For transactions effected on or after January 1, 2026, brokers must report basis for covered securities, generally digital assets acquired on or after that date and held in broker custody. For tax year 2025 basis reporting was permitted but not required, with transitional penalty relief.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/details>\n<details class=\"elementor-element elementor-element-2b45e77 e-con e-atomic-element e-accordion-item-base  e-2b45e77-0924db4 \" data-id=\"2b45e77\" data-element_type=\"e-accordion-item\" data-e-type=\"e-accordion-item\" data-interaction-id=\"2b45e77\" data-e-type=\"e-accordion-item\" data-id=\"2b45e77\"  name=\"9505237\">\n    <summary class=\"elementor-element elementor-element-f2f301a e-con e-atomic-element e-accordion-item-header-base  \" data-id=\"f2f301a\" data-element_type=\"e-accordion-item-header\" data-e-type=\"e-accordion-item-header\" data-interaction-id=\"f2f301a\" data-e-type=\"e-accordion-item-header\" data-id=\"f2f301a\">\n    <span class=\"elementor-element elementor-element-07e9a07 e-con e-atomic-element e-accordion-item-title-base  \" data-id=\"07e9a07\" data-element_type=\"e-accordion-item-title\" data-e-type=\"e-accordion-item-title\" data-interaction-id=\"07e9a07\" data-e-type=\"e-accordion-item-title\" data-id=\"07e9a07\">\n    \t\t\t<span class=\"e-2f25372-705cf76 e-paragraph-base e-default-span\" data-interaction-id=\"2f25372\" data-e-type=\"widget\" data-id=\"2f25372\"><strong>Why does Sovos file 1099-DA through IRIS rather than FIRE?<\/strong><\/span>\n\t\t\n<\/span>\n<div class=\"elementor-element elementor-element-6909c0c e-con e-atomic-element e-accordion-item-icon-base  e-6909c0c-fdbe6f1 \" data-id=\"6909c0c\" data-element_type=\"e-accordion-item-icon\" data-e-type=\"e-accordion-item-icon\" data-interaction-id=\"6909c0c\" aria-hidden=\"true\" data-e-type=\"e-accordion-item-icon\" data-id=\"6909c0c\">\n    \t\t\t<div class=\"e-svg-base e-default-div\" data-interaction-id=\"d359f48\" data-e-type=\"widget\" data-id=\"d359f48\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" style=\"width: 100%; height: 100%; overflow: unset;\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"currentColor\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M5.46967 9.21967C5.76256 8.92678 6.23744 8.92678 6.53033 9.21967L12 14.6893L17.4697 9.21967C17.7626 8.92678 18.2374 8.92678 18.5303 9.21967C18.8232 9.51256 18.8232 9.98744 18.5303 10.2803L12.5303 16.2803C12.2374 16.5732 11.7626 16.5732 11.4697 16.2803L5.46967 10.2803C5.17678 9.98744 5.17678 9.51256 5.46967 9.21967Z\" fill=\"currentColor\"><\/path><\/svg><\/div>\n\t\t\n<\/div>\n\n<\/summary>\n<div class=\"elementor-element elementor-element-7e408f6 e-con e-atomic-element e-accordion-item-content-base  \" data-id=\"7e408f6\" data-element_type=\"e-accordion-item-content\" data-e-type=\"e-accordion-item-content\" data-interaction-id=\"7e408f6\" data-e-type=\"e-accordion-item-content\" data-id=\"7e408f6\">\n    \t\t<div class=\"elementor-element elementor-element-66c5855 elementor-widget elementor-widget-text-editor\" data-id=\"66c5855\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Because Form 1099-DA was built exclusively on the IRS Information Returns Intake System and is not supported on the legacy FIRE system. Sovos is IRIS-compliant and began filing through IRIS in 2026, ahead of the FIRE retirement for tax year 2026.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/details>\n<details class=\"elementor-element elementor-element-5f8c6f2 e-con e-atomic-element e-accordion-item-base  e-5f8c6f2-c5ce25a \" data-id=\"5f8c6f2\" data-element_type=\"e-accordion-item\" data-e-type=\"e-accordion-item\" data-interaction-id=\"5f8c6f2\" data-e-type=\"e-accordion-item\" data-id=\"5f8c6f2\"  name=\"9505237\">\n    <summary class=\"elementor-element elementor-element-91df69d e-con e-atomic-element e-accordion-item-header-base  \" data-id=\"91df69d\" data-element_type=\"e-accordion-item-header\" data-e-type=\"e-accordion-item-header\" data-interaction-id=\"91df69d\" data-e-type=\"e-accordion-item-header\" data-id=\"91df69d\">\n    <span class=\"elementor-element elementor-element-7c900dd e-con e-atomic-element e-accordion-item-title-base  \" data-id=\"7c900dd\" data-element_type=\"e-accordion-item-title\" data-e-type=\"e-accordion-item-title\" data-interaction-id=\"7c900dd\" data-e-type=\"e-accordion-item-title\" data-id=\"7c900dd\">\n    \t\t\t<span class=\"e-1219e79-1ba2526 e-paragraph-base e-default-span\" data-interaction-id=\"1219e79\" data-e-type=\"widget\" data-id=\"1219e79\"><strong>How does Sovos handle W-8 and W-9 collection for crypto?<\/strong><\/span>\n\t\t\n<\/span>\n<div class=\"elementor-element elementor-element-74085a4 e-con e-atomic-element e-accordion-item-icon-base  e-74085a4-6cb5e62 \" data-id=\"74085a4\" data-element_type=\"e-accordion-item-icon\" data-e-type=\"e-accordion-item-icon\" data-interaction-id=\"74085a4\" aria-hidden=\"true\" data-e-type=\"e-accordion-item-icon\" data-id=\"74085a4\">\n    \t\t\t<div class=\"e-svg-base e-default-div\" data-interaction-id=\"9e6f0a3\" data-e-type=\"widget\" data-id=\"9e6f0a3\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" style=\"width: 100%; height: 100%; overflow: unset;\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"currentColor\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M5.46967 9.21967C5.76256 8.92678 6.23744 8.92678 6.53033 9.21967L12 14.6893L17.4697 9.21967C17.7626 8.92678 18.2374 8.92678 18.5303 9.21967C18.8232 9.51256 18.8232 9.98744 18.5303 10.2803L12.5303 16.2803C12.2374 16.5732 11.7626 16.5732 11.4697 16.2803L5.46967 10.2803C5.17678 9.98744 5.17678 9.51256 5.46967 9.21967Z\" fill=\"currentColor\"><\/path><\/svg><\/div>\n\t\t\n<\/div>\n\n<\/summary>\n<div class=\"elementor-element elementor-element-4f4ee1d e-con e-atomic-element e-accordion-item-content-base  \" data-id=\"4f4ee1d\" data-element_type=\"e-accordion-item-content\" data-e-type=\"e-accordion-item-content\" data-interaction-id=\"4f4ee1d\" data-e-type=\"e-accordion-item-content\" data-id=\"4f4ee1d\">\n    \t\t<div class=\"elementor-element elementor-element-9023d09 elementor-widget elementor-widget-text-editor\" data-id=\"9023d09\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Collection is integrated into the reporting workflow, with e-solicitation and IRS validation, so new or updated documentation flows directly into reporting. That matters because missing or invalid documentation triggers backup withholding, which at exchange scale affects a population rather than individual accounts.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/details>\n<details class=\"elementor-element elementor-element-78a6adb e-con e-atomic-element e-accordion-item-base  e-78a6adb-a5eecae \" data-id=\"78a6adb\" data-element_type=\"e-accordion-item\" data-e-type=\"e-accordion-item\" data-interaction-id=\"78a6adb\" data-e-type=\"e-accordion-item\" data-id=\"78a6adb\"  name=\"9505237\">\n    <summary class=\"elementor-element elementor-element-bdb85c5 e-con e-atomic-element e-accordion-item-header-base  \" data-id=\"bdb85c5\" data-element_type=\"e-accordion-item-header\" data-e-type=\"e-accordion-item-header\" data-interaction-id=\"bdb85c5\" data-e-type=\"e-accordion-item-header\" data-id=\"bdb85c5\">\n    <span class=\"elementor-element elementor-element-24b49ef e-con e-atomic-element e-accordion-item-title-base  \" data-id=\"24b49ef\" data-element_type=\"e-accordion-item-title\" data-e-type=\"e-accordion-item-title\" data-interaction-id=\"24b49ef\" data-e-type=\"e-accordion-item-title\" data-id=\"24b49ef\">\n    \t\t\t<span class=\"e-c47c82e-06a0247 e-paragraph-base e-default-span\" data-interaction-id=\"c47c82e\" data-e-type=\"widget\" data-id=\"c47c82e\"><strong>Can Sovos work with our existing cost basis provider?<\/strong><\/span>\n\t\t\n<\/span>\n<div class=\"elementor-element elementor-element-284a1a1 e-con e-atomic-element e-accordion-item-icon-base  e-284a1a1-d9983b0 \" data-id=\"284a1a1\" data-element_type=\"e-accordion-item-icon\" data-e-type=\"e-accordion-item-icon\" data-interaction-id=\"284a1a1\" aria-hidden=\"true\" data-e-type=\"e-accordion-item-icon\" data-id=\"284a1a1\">\n    \t\t\t<div class=\"e-svg-base e-default-div\" data-interaction-id=\"b495be5\" data-e-type=\"widget\" data-id=\"b495be5\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" style=\"width: 100%; height: 100%; overflow: unset;\" width=\"24\" height=\"24\" viewBox=\"0 0 24 24\" fill=\"currentColor\"><path fill-rule=\"evenodd\" clip-rule=\"evenodd\" d=\"M5.46967 9.21967C5.76256 8.92678 6.23744 8.92678 6.53033 9.21967L12 14.6893L17.4697 9.21967C17.7626 8.92678 18.2374 8.92678 18.5303 9.21967C18.8232 9.51256 18.8232 9.98744 18.5303 10.2803L12.5303 16.2803C12.2374 16.5732 11.7626 16.5732 11.4697 16.2803L5.46967 10.2803C5.17678 9.98744 5.17678 9.51256 5.46967 9.21967Z\" fill=\"currentColor\"><\/path><\/svg><\/div>\n\t\t\n<\/div>\n\n<\/summary>\n<div class=\"elementor-element elementor-element-972f255 e-con e-atomic-element e-accordion-item-content-base  \" data-id=\"972f255\" data-element_type=\"e-accordion-item-content\" data-e-type=\"e-accordion-item-content\" data-interaction-id=\"972f255\" data-e-type=\"e-accordion-item-content\" data-id=\"972f255\">\n    \t\t<div class=\"elementor-element elementor-element-072d965 elementor-widget elementor-widget-text-editor\" data-id=\"072d965\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<p>Yes. The platform ingests transaction, proceeds and cost basis data natively, and integrates with existing or chosen partner systems, so a broker already using a particular data or basis provider is not required to replace it.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/details>\n\n<\/div>\n\n<\/div>\n\n<\/div>\n\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Home\/ Wp Admin\/ Admin Ajax.php How do digital asset brokers comply with Form 1099-DA reporting? Custodial brokers must report each digital asset sale on Form 1099-DA, per transaction rather than as an annual total. Gross proceeds reporting applies to transactions effected on or after January 1, 2025, and cost basis reporting for covered securities from&hellip;<\/p>\n","protected":false},"author":6,"featured_media":0,"parent":28,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"footnotes":""},"class_list":["post-46","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/v2\/pages\/46","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/v2\/comments?post=46"}],"version-history":[{"count":0,"href":"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/v2\/pages\/46\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/v2\/pages\/28"}],"wp:attachment":[{"href":"https:\/\/sovos.com\/taxapedia\/wp-json\/wp\/v2\/media?parent=46"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}