IRS 1099-DA Starts 2026 Filing; Crypto Taxpayers Must Provide Cost Basis to Avoid Overpayment

The IRS is rolling out the 1099-DA for 2026 tax season, reporting only proceeds from qualifying crypto transactions, not the cost basis. Taxpayers must provide their own cost basis to avoid capital gains taxes based on the full sale amount; failure to do so may result in the IRS defaulting the cost to $0 and taxing the entire gain. Crypto exchanges including Coinbase (COIN) and Robinhood (HOOD) are expected to send the forms by Feb 17, 2026. The form is part of the 2021 Bipartisan Infrastructure Law and aims to standardize reporting, potentially generating about $28B in revenue over a decade. Missing or fragmented cost basis data, especially when assets move between wallets and exchanges, complicates accurate reporting. Taxpayers are advised to maintain records, use platforms that can provide basic cost basis, or consult tax professionals to avoid overpayment and reduce audit risk.