One in Five U.S. Crypto Investors Uncertain About 1099‑DA Accuracy

A survey of 1,000 U.S. crypto investors conducted in August reveals that roughly one‑fifth of respondents who have filed, or intend to file, a tax‑extension are still waiting for information from exchanges or are unsure whether their Form 1099‑DA accurately reflects their trades.

Key Survey Findings

• 21% of respondents with an extension are still awaiting exchange data.
• Another 21% reported receiving incomplete or inaccurate 1099‑DAs.
• Exchanges generally reported gross sale proceeds but often omitted cost‑basis information.

Why Gross Proceeds Matter

Form 1099‑DA for the 2025 tax year requires brokers to report gross proceeds from covered transactions. The form does not usually include the original purchase price, meaning taxpayers must calculate their own basis to determine gains or losses.

Challenges for Taxpayers

• Records may be spread across multiple platforms—exchanges, wallets, and custodial services.
• Missing or inconsistent data (e.g., omitted trades, varying formats) can create large discrepancies, as illustrated by a case where stablecoin proceeds reported on a 1099‑DA were under $100,000 despite $300,000 of activity.
• Most crypto tax software cannot automatically import the new 1099‑DA, requiring manual entry of hundreds of transactions for active traders.

IRS Guidance and Taxpayer Options

The IRS advises taxpayers to use the 1099‑DA together with their own records to calculate basis. If a form is incorrect, taxpayers can request a corrected version but should not delay filing. Extensions are available until October 15, though any tax due must be paid by the original deadline.

Looking Ahead

For the 2026 filing year, the IRS will require mandatory basis reporting for certain covered assets held in custodial broker accounts, while reporting for non‑covered assets remains voluntary. Legislative proposals in Congress are also considering limited exemptions for network transaction fees.