What Form 1099-DA reports
A broker uses Form 1099-DA to report proceeds from digital asset dispositions to you and the IRS, with basis information in some cases. Proceeds are not the same as taxable profit: acquisition records and other relevant details still matter.
Use the statement alongside your other records. Receiving a form does not mean it covers every account or activity. The IRS requires reporting applicable digital asset income, gains, and losses even when a form is not received.
Why cost basis can still be missing
2025 transactions: the first broker statements were sent in early 2026. Most did not include cost basis. The IRS emphasized complete records and reconciliation across exchanges, wallets, and accounts.
2026 transactions: standard broker reporting requires basis for covered digital assets. Generally, these were acquired after 2025 in the custodial broker’s account and remained there until disposal. Earlier holdings and transferred-in assets are noncovered; basis reporting for them is generally optional. Certain optional reporting methods also omit basis.
A blank basis field does not establish a zero acquisition cost. Locate the earlier evidence and document gaps for your preparer.
How the records review works
- Inventory the sources. Identify the tax year, brokers, original and corrected statements, detailed transaction exports, wallets, and software reports.
- Compare matching activity. Check assets, quantities, disposal dates, proceeds, account coverage, and the way fees or grouped rows are presented.
- Trace the supporting history. Link transferred-in assets to the sending account and earlier acquisitions. Keep original files and source references.
- Document differences. Record matches, possible duplicates, missing periods, and questions for the issuer or your CPA. Unexplained figures remain visible.
Before adding a statement line to your ledger, check whether the underlying transaction is already imported. Compare the periods and report formats before treating different totals as an error.
When your software and statement differ
Bring the report from Koinly, CoinTracking, CoinTracker, Summ, or CoinLedger together with the broker statement and source exports. Explain which figure differs and which accounts and dates each report includes.
The review checks whether you are comparing the same transactions and fields, then records the evidence behind any remaining difference. Tax lot choices, tax treatment, and return filing are separate from this record-review scope.
Example: a sale with incomplete acquisition history
| Available record | Review action |
|---|---|
| A broker statement lists a sale, with basis left blank. | Identify the disposal in the detailed broker export. |
| The account history begins with a deposit from an external wallet. | Trace the sending account and locate the earlier acquisition records. |
| The earlier purchase history cannot be recovered. | List the affected activity and missing evidence for the preparer’s review. |
See the illustrative record package for the format of a working ledger, review notes, and open-items list.
What you receive
- A source inventory and comparison of the agreed statement and ledger records.
- Notes connecting matched activity and proposed record corrections to their evidence.
- An open-items list for missing history, issuer questions, and your CPA’s review.
A records review starts from $75 USD and identifies the work needed. Transaction cleanup is quoted separately, starting from $200 USD. Sources, years, transaction volume, complexity, and deliverables determine the written scope and quote.
1099-DA reconciliation FAQ
Does a blank cost basis mean my cost was zero?
No. The IRS instructions distinguish an omitted basis field from a genuine zero basis. Gather the acquisition evidence and document what remains unknown for your CPA.
Can Elena change the form issued by my broker?
The review can document differences and supporting records. If the form contains incorrect information, request a corrected form from its issuer and keep the original, correction, and correspondence together.
What if I did not receive a 1099-DA?
Build the source inventory from the records available. The absence of a form does not remove applicable reporting obligations; your CPA can review the complete history.
Is tax return preparation included?
This service reviews and organizes records for your CPA or EA. Tax advice, return preparation, filing, and representation are separate from the listed record services.
What should I send in the first message?
Name the tax year, broker, software, and issue. A brief description is enough to discuss the scope; the record-sharing method is agreed afterward.