IRS 1099-DA Cost Basis Reporting for Crypto Goes Live
The honor system for crypto tax reporting is over. The IRS can now see your cost basis.
What Changed
On April 15, 2026, the IRS formally implemented mandatory cost basis reporting for digital asset brokers via Form 1099-DA. Centralized exchanges, custodial wallets, and qualifying DeFi platforms must now report customers' cost basis directly to the IRS — enabling automatic gain/loss calculation. The self-reporting honor system that has governed crypto taxation since inception is replaced by broker-reported data that the IRS can cross-reference against filed returns.
Who It Affects
Every centralized crypto exchange, custodial wallet provider, and qualifying DeFi platform operating in the US or serving US customers. Individual crypto holders will receive 1099-DA forms for the first time.
What to Do
Ensure your platform's reporting infrastructure generates accurate 1099-DA forms for all applicable transactions. Verify cost basis calculations across lot methods (FIFO, LIFO, specific identification). If you are a DeFi platform, assess whether your activities bring you within the broker reporting definition.
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