Form 1099-DA Basis Gap: What Households Should Prepare
New Form 1099-DA statements arrive in early 2026, but most will show proceeds without basis. Households must reconstruct cost basis before filing.
The new broker statement for digital asset transactions is coming, but it will usually leave out the number that decides the tax bill. The Internal Revenue Service says the Form 1099-DA used by brokers to report certain digital asset transactions will be sent to taxpayers in early 2026, covering transactions that took place beginning in calendar year 2025. For most of these statements, the basis of the transaction will not be provided for the 2025 tax year, and taxpayers must calculate basis before their 2025 return can be filed.
That single gap turns a routine filing into a records project. A household that sold, swapped or otherwise disposed of digital assets in 2025 should start pulling together purchase records now, while exchange statements and wallet histories are still easy to reach.
What the new form actually covers
Form 1099-DA is used by brokers to report certain transactions involving digital assets that took place beginning in calendar year 2025. Brokers must also furnish taxpayers a statement reflecting the information reported to the IRS on Form 1099-DA. According to the source, that deadline falls in February, but the exact day is not specified in the available material.
These statements differ from many other IRS forms taxpayers receive because most will not provide the basis of the digital asset transactions for the 2025 tax year. In plain terms, the form may tell a household what it received in proceeds, while leaving the household to establish what the asset originally cost.
Who may get no statement at all
Decentralized Finance brokers and some foreign brokers are not required to file Form 1099-DA with the IRS or furnish a statement to taxpayers showing their digital asset transactions. A household that used a DeFi protocol or an offshore platform should not assume that silence means no taxable activity occurred.
Taxpayers should understand their tax obligations whether or not they received a statement showing all taxable digital asset activities. The absence of a form is a records problem, not a clean bill of health.
Building a basis file before filing
Basis must be calculated by taxpayers before their 2025 tax return can be filed, and detailed recordkeeping is critical for reporting basis accurately. The IRS guidance points tax professionals to review and reconcile all transactions, which may be spread over multiple exchanges, wallets and accounts, then apply appropriate cost basis methods and document the findings.
- Gather acquisition records for every platform and wallet used, including dates and amounts paid.
- Match each disposition to the units acquired, rather than relying on a single platform total.
- Reconcile transfers between wallets and exchanges so the same asset is not counted twice.
- Keep the documentation behind any basis figure chosen, so the reasoning can be explained later.
The source does not specify which cost basis methods taxpayers or preparers should use. That decision sits with the taxpayer and their preparer based on the records available, so the documentation behind the chosen method matters as much as the number itself.
Tax professionals using software should ensure they are using trusted software and pay close attention to taxpayer information. Households assembling their own records face the same discipline: complete and accurate data is the foundation of any basis calculation.
A worked example of the mismatch
Consider a hypothetical household that acquired the units it later sold for a total cost of $6,000 and sold those same units in 2025 for $9,000 in proceeds. Suppose the household can document only $4,500 of that acquisition cost, leaving $1,500 unsupported by records.
Using only the documented figure, the hypothetical reported gain would be $4,500. If the full $6,000 were eventually substantiated, the hypothetical gain would fall to $3,000. The $1,500 difference is the value of the missing records, and it is why reconstructing basis before filing is worth the effort.
What the source does not say
The guidance does not provide the exact February deadline for broker statements beyond the month. It does not enumerate permissible cost basis methods or tell a household which method to select. It does not state penalties, dollar thresholds, or how many taxpayers will receive a statement without basis.
It also does not address state tax treatment, the tax status of any specific DeFi activity, or how foreign brokers should be identified in practice. Readers should not read the source as resolving those questions.
What to do with this now
Households with 2025 digital asset sales have time before filing season pressure builds. The most useful step is to open every exchange and wallet history, export the transaction logs, and begin matching sales to purchases while the records are accessible.
For preparers, the practical test is simple: if a client hands over a Form 1099-DA showing proceeds but no basis, the file is incomplete. The work of building that basis belongs before the return, and the quality of the supporting records will determine how defensible the final number is.
Sources
Informational only. Not financial, legal or investment advice. Check the primary sources listed above before you act on anything here.