Effortless 1099-DA compliance with automation, accuracy, and seamless integrations—reduce risk, streamline operations, and build trust with a proven solution.
With nearly 40 years of expertise in information reporting, Sovos processes hundreds of millions of tax forms each year for over 30,000 customers. Since 2008, we have been a trusted partner in broker transaction reporting, seamlessly expanding into digital asset reporting to ensure compliance across all asset types.
Sovos ensures your 1099-DA filings meet IRS and state requirements with accuracy, reducing audit risks and penalties while keeping you confidently compliant.
Automate reporting and withholding to cut down on administrative work, enabling your team to focus on growth while Sovos handles the complexities.
Deliver easy-to-read, consolidated tax statements that enhance transparency, safeguard sensitive data, and reinforce your platform’s reputation for compliance and reliability.
Sovos simplifies 1099 reporting and withholding by centralizing all obligations, including 1099-DA. This streamlined approach enhances efficiency, improves accuracy, and scales seamlessly while ensuring a consistent experience for recipients.
With the IRS mandating transaction level reporting, including sales of digital assets like cryptocurrency, NFTs and stablecoins, you need a solution that scales. Sovos 1099 Reporting can process 1M+ digital asset transactions per minute, ensuring smooth, high-volume reporting without delays or bottlenecks.
Provide recipients with a clear, consolidated tax statement that includes all transactions and form types. Sovos solutions integrate traditional and digital asset tax reporting—including 1099-B, 1099-DA, 1099-DIV, 1099-INT, 1099-MISC, 1099-OID and 1099-PATR—into a single statement delivered via mail or electronically.
As an early adopter of IRIS, the IRS’ new 1099 filing system, Sovos ensures seamless, compliant application-to-application filings. With 22% of IRIS filings handled through Sovos, we offer proven expertise in filing 1099-DA returns and more through the new system.
Sovos monitors all direct state reporting rules, thresholds, and deadlines—so you don’t have to. Our built-in compliance ensures your filings meet evolving state regulations, even with last-minute changes.
Generating a 1099-DA form requires accurate W-8/W-9 management, withholding determination, transaction tracking and cost basis calculations. Sovos partners with industry leaders to ensure a seamless flow of information, but we also integrate with existing or chosen partners—giving you the flexibility to build the best tax compliance solution with the top providers in the market.
Interested in becoming a Sovos partner?
Yes, Sovos 1099 Reporting supports all federal and state filing requirements, even as they evolve leading up to the reporting deadline.
Form 1099-DA is being built exclusively on IRIS, the IRS’s new filing system, and is not supported on the legacy FIRE system. Since all 1099-DA filers must use IRIS, it makes sense to consolidate filing for all available form types on the same platform. The primary form not yet available on IRIS is Form 1042-S, but development for it began in early 2025.
State reporting requirements for Form 1099-DA are still evolving, and new states may introduce requirements up until the filing deadline. To stay up to date, visit our State Reporting Guide for the latest information.
Penalties for 1099-DA filings are the same as other 1099 forms. Beginning with tax year 2026, 1099-DA will be subject to backup withholding, meaning enforcement of missing or incorrect name/TIN combinations will begin then. Incorrect name/TIN combinations for 2025 filings may result in penalties of $340 per incorrect record. Learn more about penalties here.
Once data is added to the system, it goes through multiple validations, including IRS-specific checks. These validations ensure all required fields are populated, addresses are formatted correctly, and IRS rules—such as code and percentage combinations—are followed. This helps prevent errors before submission.
Once a record is filed with the IRS, any updates are considered corrections. Sovos supports all federal corrections and amendments, including generating corrected statements and filing updates with the IRS.
Sovos partners with industry leaders in W form eSolicitation capabilities and has direct integrations with those solutions. New or updated information collected by our partners can be immediately reflected within our information reporting solutions.
Sovos has partnerships with leading cost basis providers where we’ve worked out the details necessary to take in the transactions and produce compliant tax forms. We’re also flexible to take in proceeds, cost basis and demographic data from separate sources tying that data together to complete the 1099 form output.
