When are 1099-DAs due to the IRS? Key dates and more

Cryptocurrencies are no longer a fringe asset class. Along with this increased legitimacy come more regulations, including from the IRS, which is now implementing new digital asset information reporting requirements. 

Form 1099-DA, the new digital asset information return, provides a clear framework for reporting sales and dispositions of digital assets. It represents a significant step toward greater transparency in cryptocurrency and other digital asset transactions, and aligns crypto reporting more closely with traditional securities reporting. And like any other kind of information return required by the IRS, staying aware of and adhering to filing deadlines is critical for both brokers and investors.

In this article, we’ll cover what you need to know about this new form, including key IRS due dates for Form 1099-DA, such as when a 1099-DA is due to the IRS and when it must be furnished to taxpayers, and what these deadlines mean for brokers and investors.

When do brokers need to file 1099-DAs with the IRS?

U.S. custodial brokers, which include centralized exchanges (CEXs) and other businesses that hold and execute digital asset transactions on behalf of customers, are required to file Form 1099-DA with the IRS. Reporting applies to both covered and noncovered digital asset sales; for 2025 transactions, brokers report gross proceeds only (basis reporting begins for covered digital assets acquired after 2025). 

For those submitting on paper, the 1099-DA broker deadline is February 28 of the year following the tax year. Paper filing is still permitted, but because filers with 10 or more information returns must e-file, paper submissions are now largely obsolete for most brokers.

For brokers filing electronically, the 1099-DA submission deadline is March 31 of the year following the tax year. That means that all 1099-DAs for the 2025 tax year must be e-filed by March 31, 2026. 

When do investors receive 1099-DAs from brokers?

To help investors complete their tax returns in a timely manner, the IRS requires that brokers furnish Form 1099-DA to recipients by February 15 of the year following the tax year (often referred to as the 1099-DA investor delivery date). For the 2025 tax year, however, the furnishing deadline is February 17, 2026, since February 15 falls on a Sunday and February 16 is a federal holiday. 

That said, many brokers aim to issue 1099-DAs earlier (some as early as late-January). Practically speaking, you can expect to receive your form between late January and February 17. If a broker hasn’t provided your 1099-DA by February 17, reach out to get your form as soon as possible.

Investors will typically receive Form 1099-DA either by mail or through their broker’s online portal. Under IRS rules, electronic delivery generally requires the investor’s affirmative consent (see IRS Publication 1179). In practice, however, many digital asset brokers may opt for electronic-only furnishing through secure account dashboards for operational efficiency. 

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How deadlines align with tax filing dates

The deadlines for 1099-DA issuance and submission are designed to allow ample time for everyone to account for the investor’s digital asset activity without a last-minute time crunch. 

The personal income tax filing deadline in the U.S. is typically April 15, or the next business day if April 15 falls on a weekend or holiday. Since institutions need to send investors their 1099-DA by February 17, tax filers should have almost two months to use the data on their 1099-DA to prepare Form 8949 and Schedule D for their tax return.

This timing gives investors an opportunity to reconcile the information on their Form 1099-DA with their own transaction records before filing. While gross proceeds reported by brokers should generally be accurate, the more time-consuming and error-prone task is verifying cost basis and holding periods. For the 2025 tax year, brokers are required to report only gross proceeds to the IRS because all assets disposed of in 2025 are noncovered. However, some brokers may choose to display cost basis information on the recipient copy. Investors should verify any basis amounts shown and maintain their own records to ensure accuracy across wallets and exchanges. 

Even when a broker provides optional cost basis details to customers, that data may differ from an investor’s own calculations, particularly when assets move between platforms or self-custody wallets. In addition, investors who trade through non-custodial wallets or decentralized exchanges won’t receive a Form 1099-DA for such activity, since those platforms are not treated as custodial brokers under current IRS rules. Reviewing and reconciling all 1099-DAs received early helps prevent mismatches and IRS inquiries later. 

How to prepare for future 1099-DA reporting

Both brokers and investors should work proactively to minimize compliance risks and streamline the tax filing process. Here are some key steps brokers should use to get ready: 

• Collect tax certifications (W-8 and W-9 forms): Each account holder must have a valid Form W-9 (for U.S. persons) or Form W-8 series (for non-U.S. persons) on file. These forms collect taxpayer identification numbers (TINs), entity types, and U.S. tax status certifications, information essential for proper information reporting and compliance. 
• Ensure accurate cost basis tracking: Evaluate internal systems for tracking cost basis, particularly ahead of 2026 when basis reporting for covered digital assets becomes mandatory. Establish reliable data aggregation and reconciliation processes now to minimize downstream corrections once basis reporting begins. Brokers will either need to develop a cost basis engine in-house or find a reliable vendor.
• Partner with crypto tax compliance software for automation: Platforms like CoinTracker enable brokers to automate cost basis calculations, reconcile transaction data, and generate Form 1099-DAs for both IRS submission and user delivery. CoinTracker integrates with leading filing vendors to streamline the entire digital asset reporting workflow, helping brokers reduce manual errors and meet deadlines confidently.
• Plan early for IRS electronic submission readiness: Run test submissions and validate your systems well before the filing deadline to confirm readiness for the IRS IRIS portal. Early validation can help avoid delays or rejections during the reporting season.
• Establish a process for corrections of 1099-DAs: Develop a process to deal with any corrections of issued forms, as errors in initial filings may lead to penalties under IRC §6721 and §6722 if not addressed swiftly. 

Crypto investors should prepare for tax season with the following steps: 

• Maintain complete transaction records across all exchanges, wallets, and decentralized finance platforms: Maintain detailed records of all digital asset transactions, including purchase and sale dates, cost and sale prices, and any associated fees. This is an especially important step for crypto dispositions not done under a broker, as they won’t be reported on Form 1099-DA but remain taxable and must still be reported on taxes.
• Regularly reconcile holdings with broker data before year-end: Cross-check your books and records with broker information to identify and resolve any mismatches in proceeds, basis, or asset counts before filing season.
• Use crypto tax software to consolidate activity across multiple platforms: Consider using specialized crypto tax software like CoinTracker to track your activity across all centralized and decentralized platforms. These services consolidate all your transactions, track your cost basis, and generate all necessary tax forms simplifying your preparation process. 
• Mark important deadlines to avoid filing delays: Keep an eye on the calendar for January 31 (other information returns), February 17 (Form 1099-DA furnishing), and April 15 (individual tax filing deadline) as a proactive approach to prevent last-minute filings and potential delays. Staying organized and aware of these deadlines reduces last-minute stress and missed forms. 

What happens if a broker files Form 1099-DA incorrectly?

If a broker files Form 1099-DA late, omits required fields, or includes missing or incorrect taxpayer information, such as an invalid or unissued TIN, penalties may apply under IRC § 6721 and § 6722. These provisions cover failures to file information returns with the IRS and failures to furnish correct payee statements to recipients.

Penalties for failing to file correct information returns start at $60 per return, depending on how quickly the error is corrected. If the correction is made within 30 days, the penalty is $60 per form; if corrected by August 1, it rises to $130; and after August 1, it increases to $340 per form. The penalty increases to $680 per form for intentional disregard of filing requirements. The IRS also charges interest on penalties. 

Investors are not penalized for a broker’s filing error, but discrepancies between Form 1099-DA and the taxpayer’s return can trigger IRS matching notices. If a broker reports incorrect information, maintaining detailed transaction records and reconciling activity throughout the year can help demonstrate reasonable cause and support accurate reporting.

Make crypto taxes easier with CoinTracker

Form 1099-DA was introduced to improve transparency and consistency in digital asset reporting. While U.S. custodial brokers are required to issue the form for sales or exchanges, many types of activity remain outside its scope. Transactions conducted through non-custodial wallets, decentralized exchanges, or involving certain NFTs will not be reported on Form 1099-DA and must still be tracked and reported by the taxpayer.

Managing your crypto assets shouldn’t be complicated. CoinTracker lets you track your entire portfolio across multiple exchanges and wallets, all in one place. Join the two million users who rely on CoinTracker for a seamless crypto experience – start free today.

Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.