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Coinbase Begins Issuing 1099-DA Tax Forms to U.S. Customers for Crypto Transactions

Coinbase Begins Issuing 1099-DA Tax Forms to U.S. Customers for Crypto Transactions

Coinbase highlights challenges with IRS digital asset reporting, citing complexity and potential overreporting, and will report only gross proceeds for 2024, adding cost basis in the following tax year.

Fact Check
The statement is fundamentally true: Coinbase began issuing the new IRS Form 1099-DA to U.S. customers in early 2026. As reported by CoinDesk and confirmed by Coinbase's help center, the exchange is reporting only 'gross proceeds' for this initial phase (the 2025 tax year), citing the complexity of calculating cost basis across different platforms. The only minor discrepancy is the year mentioned in the user's snippet ('2024'); official IRS rules (TD 10000) and Coinbase's documentation specify that the reporting requirement for gross proceeds applies to transactions occurring on or after January 1, 2025, making the 2026 issuance the first cycle.
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Summary

Coinbase has stated that IRS Form 1099-DA is overly complex and may create unnecessary administrative burdens, particularly for small stablecoin trades and gas fees. For 2024 filings, the exchange will report only gross proceeds to the IRS, deferring cost basis reporting to the next tax year, while planning to provide tools to assist users with tax calculations.

Terms & Concepts
  • 1099-DA forms: Tax forms issued by cryptocurrency exchanges to report digital asset transactions to the IRS.
  • Cost basis: The original value of an asset for tax purposes, used to determine capital gains when the asset is sold.
  • Stablecoins: Cryptocurrencies pegged to the value of a stable asset, typically the U.S. dollar, to minimize volatility.