Crypto's Anonymous Era Just Ended: Form 1099-DA Now Tells the IRS What You Sold and Its Cost-Basis Math May Not Match Yours - 24/7 Wall St.

Starting with the 2025 tax year, brokers are required to file Form 1099-DA with the IRS, reporting proceeds and cost basis from cryptocurrency sales and exchanges. This ends the anonymous era for digital assets: the IRS now receives transaction-level data directly from platforms, rather than relying solely on what taxpayers report themselves.

However, the cost-basis math on your 1099-DA may not match your own figures. Brokers often use a default accounting method, such as first-in, first-out (FIFO), unless you have explicitly selected another. If you hold the same asset across multiple wallets or have transferred coins between exchanges, a single broker's reported basis may not reflect your true acquisition costs.

The key is to reconcile your personal records against each 1099-DA before filing. Compare transaction histories and confirm which cost-basis method was applied. The form is not a final IRS determination of what you owe, but mismatches can trigger questions. Accurate, consistent recordkeeping is now essential to align your tax filing with the data the IRS already has.