Filer Instructions — General

General Instructions

2025—Mandatory reporting of gross proceeds information and voluntary reporting of basis information.

For each digital asset sale that a broker has effected for a customer in 2025, the broker must complete Form 1099-DA, as described in For sales effected in 2025 , but is not required to report basis information. However, the broker may voluntarily report this basis information. For any basis information voluntarily reported by the broker, the broker will not be subject to penalties under section 6721 or 6722 for failure to report or furnish the information correctly. For additional information regarding penalty relief for reporting for sales effected in 2025, and transitional relief from backup withholding for certain sales effected in 2025, see Notice 2024-56.

Brokers.

A broker includes any person who, in the ordinary course of a trade or business, stands ready to effect sales of digital assets to be made by others.

You are considered a broker with respect to sales of digital assets if:

You are a person that regularly offers to redeem digital assets that were created or issued by you, or

You effect dispositions of customers’ digital assets as an agent, a dealer, or digital asset middleman.

Generally, only a U.S. digital asset broker is required to report on Form 1099-DA. A U.S. digital asset broker is a U.S. person (other than a foreign branch or office of such person), or a U.S. branch described in Regulations section 1.1441-1(b)(2)(iv) that is treated as a U.S. person (excluding a territory financial institution) that effects sales of digital assets on behalf of others. See Regulations section 1.6045-1(g)(4)(i)(A). See Widely held fixed investment trusts (WHFITs) , later, for rules specific to WHFIT reporting.

Closing transactions.

In the case of a digital asset that is also an option, regulated futures contract, securities futures contract, or forward contract, a sale includes any closing transaction. A closing transaction is a lapse, expiration, settlement, abandonment, or other termination of a position (which includes a right or an obligation under a forward contract, a regulated futures contract, a securities futures contract, or an option).

Covered security.

For purposes of Form 1099-DA, a covered security is a digital asset acquired after 2025 for cash, stored-value cards, different digital assets, or any property or services the disposition of which the broker is required to report in an account for which the broker provided custodial services. A digital asset is a covered security only if it was acquired in an account for which the broker provided custodial services and was held in that account until the broker effects the disposition of the digital asset. Acquiring a digital asset includes granting an option and entering into a forward contract.

Digital asset.

A digital asset is any digital representation of value that is recorded on a cryptographically secured distributed ledger (such as a blockchain or any similar technology) without regard to whether each individual transaction involving that digital asset is actually recorded on that distributed ledger, and that is not cash (that is, U.S. dollars or any convertible foreign currency issued by a government or central bank). A description of digital assets that are qualifying stablecoins or specified NFTs can be found in Optional reporting method , later.

Digital asset middleman.

You are a digital asset middleman if:

• You accept or process digital assets as payment for stock, commodities, regulated futures contracts, securities futures contracts, forwards contracts, foreign currency contracts, debt instruments, options, or securities futures contracts;

• You are a real estate reporting person with actual knowledge or ordinarily would know that digital assets were used by the real estate buyer to make payment;

• You accept digital assets as payment for broker services;

• You own or operate one or more digital asset kiosks; or

• You are a processor of digital asset payments, provided you have actual knowledge or ordinarily would know the nature of the transaction and the gross proceeds therefrom.

You are not a digital asset middleman if:

• You are solely engaged in providing proof-of-work or proof-of-stake distributed ledger validation services, without providing other functions or services, or

• You only provide hardware or software (by sale, license, or otherwise) that permits users to control private keys to access digital assets on a distributed ledger, without providing other functions or services.

Processor of digital asset payments.

A processor of digital asset payments is a broker who regularly facilitates payments from one party to a second party by receiving digital assets from the first party and paying those digital assets, cash, or different digital assets to a second party, provided the transaction is not otherwise a sale under Regulations section 1.6045-1(a)(9)(ii)(A) through (C).

Noncovered security.

For purposes of Form 1099-DA, a noncovered security is any digital asset that is not a covered security. The following digital assets are noncovered securities.

• Any digital asset that the broker did not provide custodial services for when it was acquired.

• A digital asset that was acquired before January 1, 2026.

• A digital asset that was transferred in to the broker providing custodial services.

• A digital asset that, when acquired, would not be subject to reporting on Form 1099-DA when later sold because it was acquired by an exempt recipient, as defined in Regulations section 1.6045-1(c)(3)(i) or is considered to be an exempt foreign person under Regulations sections 1.6045-1(g)(1) and (4).

• A digital asset for which reporting is required by Regulations section 1.6045-1(g)(4)(vi)(E) (certain securities owned by a foreign intermediary or flow-through entity).

Qualifying stablecoin.

A digital asset is a qualifying stablecoin if it meets three conditions:

• The digital asset is designed to track on a one-to-one basis a single convertible currency issued by a government or central bank (including the U.S. dollar);

• The digital asset uses an effective stabilization mechanism. See Regulations section 1.6045-1(d)(10)(ii)(B); and

• The digital asset is generally accepted as payment by persons other than the issuer. See Regulations section 1.6045-1(d)(10)(ii)(A) through (C).

Designated sale of qualifying stablecoin.

A designated sale of a qualifying stablecoin is any sale of a qualifying stablecoin other than a sale of a qualifying stablecoin in exchange for different digital assets that are not qualifying stablecoins. In addition, a designated sale of a qualifying stablecoin includes any sale of a qualifying stablecoin that provides for the delivery of a qualifying stablecoin pursuant to the settlement of any executory contract that would be treated as a designated sale of the qualifying digital asset if the contract had not been executory.

Sale.

A sale of digital assets effected by a broker on behalf of another person includes:

• The disposition of digital assets in exchange for cash, stored-value cards, different digital assets, or services provided by the broker;

• The disposition of digital assets to pay for securities, commodities, options, regulated futures contracts, securities futures contracts, or forward contracts acquired through the broker;

• The delivery of digital assets pursuant to the settlement of a forward contract, option, regulated futures contract, any similar instrument, or any other executory contract which would be described in the previous bullet if the contract had not been executory;

• For brokers that are real estate reporting persons, the disposition of digital assets in exchange for real property and services; and

• For brokers that are processors of digital asset payments, the payment of a digital asset by one party to a processor of digital asset payments in return for the payment of that digital asset, cash, or a different digital asset to a second party.

Specified NFT.

A digital asset is a specified NFT if the digital asset is indivisible, unique, and does not directly (or indirectly) provide the holder with an interest in certain excluded property. See Regulations section 1.6045-1(d)(10)(iv)(C).

General Reporting

For brokers using an optional method for reporting sales of qualifying stablecoins and specified NFTs, see Optional reporting method , later.

Generally, you should report each transaction on a separate Form 1099-DA. However, in the case of a disposition of digital assets in exchange for services provided by the broker (broker fee), the broker may combine the reporting of the transaction to pay for broker fees with the underlying transaction for which the broker fee was charged if the broker fee is paid using the digital asset disposed in the underlying transaction. For example, if a broker effects on behalf of a customer the sale of 1 unit of Digital Asset A for ten units of Digital Asset B (charging 0.1 units of Digital Asset A for the broker's services), the broker may file one Form 1099-DA to report the customer's sale of 1.1 units of Digital Asset A. The broker may not combine the reporting of a transaction to pay for broker fees with the underlying transaction for which the broker fee was charged if the broker fee is paid in a digital asset other than the digital asset disposed in the underlying transaction.

How many transactions to report on each form.

Report each transaction on a separate Form 1099-DA.

How many forms to file for each transaction.

Report sales of each of the following types of digital assets on a separate Form 1099-DA, even if all four types were sold in a single transaction.

Covered securities (defined earlier) with short-term gain or loss.

Covered securities with long-term gain or loss.

Noncovered securities if you check box 9 when reporting their sale. If you choose to not check box 9, report the sale as a sale of a covered security.

First sales by a creator or minter if you report sales of specified NFTs using the optional reporting method for specified NFTs.

Optional reporting methods.

A broker reporting sales of qualifying stablecoins using the optional reporting method for qualifying stablecoins may report a customer's aggregate designated sale transactions for each type of qualifying stablecoin on one Form 1099-DA.

For example, if the broker effects designated sales of Qualifying Stablecoin A and Qualifying Stablecoin B for a customer, the broker must report the customer's designated sales of Qualifying Stablecoin A on one Form 1099-DA and the customer's designated sales of Qualifying Stablecoin B on a separate Form 1099-DA.

A broker reporting sales of specified NFTs using the optional reporting method for specified NFTs may report all of a customer's specified NFT transactions together on a single Form 1099-DA.

A broker reporting sales using an optional method is not required to report acquisition dates or basis amounts, even if the digital assets are covered securities.

A broker reporting sales of digital assets using an optional method for reporting sales of qualifying stablecoins and specified NFTs must complete all unnumbered boxes on Form 1099-DA except the CUSIP (Committee on Uniform Security Identification Procedures) number box, which may be left blank if there is no applicable number. Additionally,

A broker reporting sales of qualifying stablecoins using the optional reporting method for qualifying stablecoins may leave boxes 1d, 1e, 1g, 1h, 1i, 2, 3a, 3b, 5, 6, 8, and 9 blank.

A broker reporting sales of specified NFTs using the optional reporting method of specified NFTs may leave boxes 1a, 1b, 1d, 1e, 1g, 1h, 1i, 2, 3a, 3b, 5, 6, 8, and 9 blank. Enter code “999999999” in box 1a and enter “Specified NFTs” in box 1b.

For sales of qualifying stablecoins reported using the optional reporting method for qualifying stablecoins, enter the total gross proceeds for all designated sales of the qualifying stablecoin reported on this form in box 1f.

For sales of specified NFTs reported using the optional reporting method for specified NFTs, enter the total gross proceeds from all sales of the specified NFTs, other than the amount of gross proceeds attributable to first sales by a creator or minter, in box 1f. For sales of specified NFTs reported using the optional reporting method for specified NFTs, enter the total gross proceeds from all sales attributable to first sales by a creator or minter, in box 11c and leave box 1f blank.

Substitute statements.

Brokers that use substitute statements may be able to report customer transactions (digital asset sales (Form 1099-DA), stock sales (Form 1099-B, Proceeds From Broker and Barter Exchange Transactions), interest earned (Forms 1099-INT, Interest Income, and 1099-OID, Original Issue Discount), dividends (Form 1099-DIV, Dividends and Distributions), and foreign taxes paid (Forms 1099-DIV and 1099-INT)) for the year on a single substitute statement. For details, see Pub. 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns, at IRS.gov/Pub1179, which provides the rules for substitute forms.

Information Required on the Form 1099-DA

For sales effected in 2025

For sales of digital assets you effect as a broker for customers in 2025, you must complete all unnumbered boxes on Form 1099-DA except the CUSIP (Committee on Uniform Security Identification Procedures) number box, which may be left blank if there is no applicable number. Additionally,

Boxes 1a, 1b, 1c, 1e, and 1f must be completed.

Boxes 3b, 4, 5, 7, 8, 9, 14, 15, and 16 are completed only if applicable.

If the digital assets were sold because of the exercise of an option, complete box 3a.

If the digital asset(s) sold, exchanged, or otherwise disposed of were transferred to a broker providing custodial services, provide the number of units sold that had been transferred to the broker in box 12a and the date of transfer-in in box 12b.

You are not required to report basis information (boxes 1d, 1g, 1h, 1i, 2, and 6) with respect to the sale of the digital asset but may voluntarily fill out these boxes and will not be subject to penalties under section 6721 or 6722 for failure to report or furnish this information correctly.

If you do not report basis information with respect to the sale of the digital assets, use code Y in the box “Applicable checkbox on Form 8949.”

Penalty relief is available for reported basis information with respect to both covered and noncovered securities. Box 9 (indicating that the sale is of a noncovered security) is not required to be completed.

For sales of digital assets that are tokenized assets for cash effected in 2025 only, you may report the disposition on either Form 1099-DA or Form 1099-B.

Example for voluntarily reporting basis information for sales effected in 2025

You are a broker that also provides custodial services. Using your services, customer Beth bought units of digital asset ABC in April 2022, April 2024, and August 2024. The digital asset ABC units are noncovered securities. In June 2025, Beth sells all of the digital asset ABC units in a single transaction. If you do not choose to voluntarily report basis information, you may report the sale on one 2025 Form 1099-DA. If you choose to voluntarily report basis information, you may report the sale on two separate 2025 Forms 1099-DA: one for digital asset ABC units bought in August 2024 with short-term gain or loss, and a combined form for digital asset ABC units bought in April 2024 with long-term gain or loss and digital asset ABC units bought in April 2022 with long-term gain or loss. If you are voluntarily reporting the basis information, you will not be subject to penalties under section 6721 or 6722 for failing to report or furnish this information correctly.

For sales effected on or after January 1, 2026

For sales of digital assets you effect as a broker for customers on or after January 1, 2026, in addition to the reporting required under For sales effected in 2025 , you must also report the following:

If the digital asset sold, exchanged, or otherwise disposed of is a covered security and is not reported using an optional method, boxes 1d, 1g, 2, and 6 must be completed, and boxes 1h and 1i must be completed if applicable.

If the digital asset sold, exchanged, or otherwise disposed of is a noncovered security, you may check box 9. Do not check box 9 if reporting the sale of a covered security. If you check box 9 for a sale of a digital asset that is a noncovered security, you do not have to complete boxes 1d, 1g, 1h, 1i, and 6, and you do not have to check box 2.

If you check box 9 and choose to complete boxes 1d, 1g, 1h (if applicable), 1i (if applicable), 2, and 6 for a noncovered security voluntarily, you are not subject to penalties under section 6721 or 6722 for failure to report or furnish this information correctly. If you do not check box 9, you are subject to penalties under sections 6721 and 6722 for failure to report or furnish the information in boxes 1d, 1g, 1h (if applicable), 1i (if applicable), 2, and 6 correctly even if you are reporting the sale of a noncovered security.

Example for reporting of sales effected after 2025

You are a broker that provides custodial services. Using your services, customer Bill bought units of digital asset ABC in April 2022, April 2026, and August 2026. The digital asset ABC units bought in 2026 are covered securities. The digital asset ABC units bought in April 2022 are noncovered securities. In June 2027, Bill sells all of the digital asset ABC units in a single transaction. Even though the digital asset ABC units were sold in a single transaction, report the sale on three separate 2027 Forms 1099-DA: one for digital asset ABC units bought in August 2026 with short-term gain or loss, one for digital asset ABC units bought in April 2026 with long-term gain or loss, and a third for the digital asset ABC units bought in April 2022 (the noncovered securities). If you choose to report the basis information (that is, the information in boxes 1d, 1g, 1h (if applicable), 1i (if applicable), 2, and 6 of the noncovered securities (and check box 9) voluntarily, you may report the entire sale on only two separate 2027 Forms 1099-DA by combining the report of the noncovered securities with the report of the covered securities bought in April 2026 (reporting long-term gain or loss). If you voluntarily report the basis information of the noncovered securities and you check box 9, you will not be subject to penalties under section 6721 or 6722 for failing to report or furnish this information correctly.

Widely held fixed investment trusts (WHFITs)

Report a disposition of digital assets held by the WHFIT. For digital asset sales, trustees and middlemen must report the amount of non-pro rata partial principal payments (as defined in Regulations section 1.671-5(b)(13)) and trust sales proceeds (as defined in Regulations section 1.671-5(b)(21)) attributable to a trust interest holder (TIH) for the calendar year on Form 1099-DA or Form 1099-B.

Report a disposition of an interest held by a TIH in a WHFIT, including a redemption of an interest held by a TIH in a WHFIT, on Form 1099-B. If a WHFIT sells digital assets in connection with a trust interest redemption, file only one Form 1099 with respect to the redemption.

To determine the amount of each item of proceeds to be reported on Form 1099-DA, see, generally, Regulations section 1.671-5. If the trustee provides WHFIT information using the safe harbor rules in Regulations section 1.671-5(f)(1), the trustee or middleman must determine the amounts reported on Forms 1099 under Regulations section 1.671-5(f)(2).

Check box 9 and leave boxes 1d, 1g, 1h, 1i, 2, and 6 blank if:

You are a broker reporting the sale of a digital asset held by a WHFIT to the WHFIT trustee, or

You are a trustee or middleman of a WHFIT reporting non-pro rata partial principal payments and trust sale proceeds for digital asset transactions to a TIH.

Requirement to furnish a tax information statement to TIH

A tax information statement that includes the information provided to the IRS on Form 1099-DA, as well as additional information identified in Regulations section 1.671-5(e), must be provided to TIHs. The written tax information statement furnished to the TIH for 2025 is due on or before March 16, 2026. The amount of an item of a trust expense that is attributable to a TIH must be included on the tax information statement provided to the TIH and is not required to be included in box 5 on the Form 1099-DIV. See Regulations section 1.671-5(e) for a complete list of the items of information that must be included in the statement to the TIH.

Acquisition of control or substantial change in capital structure

File Form 1099-DA for each customer who received cash, stock, or other property from a corporation that you know, or have reason to know based on readily available information, must recognize gain under section 367(a) from the transfer of a digital asset that is also stock to a foreign corporation in an acquisition of control or substantial change in capital structure reportable on Form 8806, Information Return for Acquisition of Control or Substantial Change in Capital Structure. For more information, see Form 8806.

Readily available information includes information from a clearing organization, such as the Depository Trust Company (DTC), or from information published on IRS.gov.

You are not required to file a second Form 1099-DA for a customer who received only cash for a digital asset that is also stock transferred in an acquisition of control if you report the cash as proceeds from a sale on another Form 1099-DA. You are also not required to file Form 1099-DA for a customer who is an exempt recipient (under Regulations section 1.6045-1(c)(3)(i) or 1.6043-4(b)(5)). For a list of exempt recipients, see the Instructions for Form 1099-CAP, Changes in Corporate Control and Capital Structure.

Enter in box 1f the aggregate amount of cash and the fair market value (FMV) of any digital assets, services, and other property received in exchange for digital assets held in your custody.

In box 1b, show the name of the digital asset you held that was exchanged.

Leave the other numbered boxes and the CUSIP number box blank unless you are required to file a Form 1099-DA to report proceeds you paid to the customer from the acquisition of control or substantial change in capital structure and you choose to file and furnish one Form 1099-DA for amounts reported under both Regulations sections 1.6045-1 and 1.6045-3. If you choose to combine the reporting for both, do not combine other transactions the customer may have had during the year with the reporting of the acquisition of control or change in capital structure. Also, in box 1g, report the total basis of the customer's digital assets. Do not enter an amount in box 1g that is greater than the amount entered in box 1f.

Foreign currency

If the purchase amount or sales proceeds are paid in foreign currency, you must report the amount of foreign currency in U.S. dollars. Generally, you must determine the reportable amount (other than amounts representing accrued interest or original issue discount) as of the date you receive, credit, or make the payment, whichever applies, at the spot rate or by following a reasonable spot rate convention, such as a month-end spot rate or a monthly average spot rate. When reporting the purchase or sale of a digital asset traded on an established securities market in a foreign currency, you must determine the U.S. dollar amounts to be reported (other than amounts representing accrued interest or original interest discount) as the settlement date, at the spot rate or by following a reasonable spot rate convention. See Regulations section 1.6045-1(d)(8).

Generally, payments of foreign currency amounts representing accrued interest or original issue discount must be translated using the average rate for the interest accrual period, although certain customers may elect to translate such amounts using the spot rate on the last day of the interest accrual period. See Regulations sections 1.988-2(b)(2) and 1.6045-1(n)(4)(v).

Coordination with other broker reporting requirements

If you have effected a sale of a digital asset that is also a security for which the Form 1099-B would be required (dual classification asset), you should generally file Form 1099-DA and not Form 1099-B. There are three exceptions to the requirement to report a sale of a dual classification asset on a Form 1099-DA. See Regulations section 1.6045-1(c)(8).

For transactions involving dual classification assets that constitute section 1256 contracts, including regulated futures contracts or section 1256 option contracts on digital assets, you should report the section 1256 contract transactions on an aggregate basis on Form 1099-B. In this case, you may either report all section 1256 contracts on an aggregate basis on a single Form 1099-B or you may use a separate Form 1099-B for each type of contract. For more information, see the Instructions for Form 1099-B. However, in the event delivery of the underlying digital asset is made with respect to a section 1256 contract, which includes a regulated futures contract, a section 1256 option contract, or a section 1256 foreign currency contract, report the delivery of the underlying digital asset as a sale on Form 1099-DA.

For transactions involving dual classification assets that are digital assets solely because their sales are cleared or settled on a limited-access regulated network, as described in Regulations section 1.6045-1(c)(8)(iii)(B), you should file Form 1099-B and not Form 1099-DA. If the limited-access regulated network ceases to meet the requirements described in Regulations section 1.6045-1(c)(8)(iii)(B), you may continue to file Form 1099-B for transactions effected during the calendar year in which the limited-access regulated network ceases to meet the requirements.

For transactions involving dual classification assets that are shares in money market funds, you should not file Form 1099-DA and you are not required to file, but may file, Form 1099-B.

Dual classification assets that are tokenized securities

For transactions involving dual classification assets that are tokenized securities, you should file Form 1099-DA and not Form 1099-B. A tokenized security is a dual classification asset that provides the holder with an interest in another asset that is a security that is otherwise subject to reporting on Form 1099-B. Additionally, a tokenized security is an asset, the offer and sale of which is registered with the U.S. Securities and Exchange Commission, other than as an asset treated as a security for securities law purposes solely as an investment contract. See Regulations section 1.6045-1(c)(8)(i)(D). For transactions involving a tokenized security, enter the CUSIP number of the security or other applicable identifying number; report the amount of accrued market discount, if applicable, in box 1h; report the loss disallowed due to a wash sale, if applicable, in box 1i; and, if applicable, compute the average basis method if the customer elects that method or you choose the average basis method as your default method and the customer does not give you any other instructions.

Rewards and staking payments

Do not report rewards and staking payments on Form 1099-DA.

Partnership sale

Form 8308, Report of a Sale or Exchange of Certain Partnership Interests, does not have to be filed if, under section 6045, a return is required to be filed by a broker on Form 1099-DA for the transfer of a digital asset that represents the partnership interest.

Exceptions

Brokers are not required to, but may, file Form 1099-DA for the following.

• Sales for exempt recipients, including the following.

• Charitable organizations.

• IRAs.

• Archer MSAs and health savings accounts (HSAs).

• The United States or any state or a political subdivision of the United States or any state.

• Corporations. However, see Identifying a corporation, later, for instructions about how to know whether a customer is a corporation for this purpose. Also, you must file Form 1099-DA for the sale of a covered security (defined earlier) by an S corporation if the S corporation acquired the covered security after 2012.

• U.S. digital asset brokers. However, see Identifying a U.S. digital asset broker , later, for instructions about how to know whether a customer is a digital asset broker for this purpose.

• Sales initiated by financial institutions or by dealers in securities.

• Sales by custodians and trustees, provided the sale is reported on a properly filed Form 1041, U.S. Income Tax Return for Estates and Trusts.

• Sales of digital assets that constitute foreign currency issued by a foreign government or central bank unless the sales are pursuant to a section 1256(g)(2) foreign currency contract or a regulated futures contract that requires delivery of that foreign currency.

• Sales for exempt foreign persons, as defined in Regulations section 1.6045-1(g)(4).

• Grants or purchases of options, purchases due to exercises of call options, or entering into contracts that require delivery of personal property or an interest therein.

• Until the Treasury Department and IRS issue further guidance, Notice 2024-57 provides that brokers do not have to file information returns on digital asset sales in the following transactions:

• Wrapping and unwrapping transactions;

• Liquidity provider transactions;

• Staking transactions;

• Transactions described by digital asset market participants as lending of digital assets;

• Transactions described by digital asset market participants as short sales of digital assets; and

• Notional principal contract transactions.

This reporting exception does not apply to compensation earned by participants in these transactions.

Identifying a corporation

For sales of digital assets that are covered securities (defined earlier) that were acquired after 2011, you cannot rely on Regulations section 1.6049-4(c)(1)(ii)(A) to tell whether a customer is a corporation. However, for sales of all digital assets, you can treat a customer as an exempt recipient if one of the following statements is true.

• The name of the customer contains the term “insurance company,” “indemnity company,” “reinsurance company,” or “assurance company.”

• The name of the customer indicates it is an entity listed as a corporation under Regulations section 301.7701-2(b)(8)(i).

• You receive a properly completed exemption certificate on Form W-9, Request for Taxpayer Identification Number and Certification, that shows the customer is not an S corporation.

• You receive a Form W-8, Certificate of Foreign Status, described in Regulations section 1.1441-1(e)(2)(i) that includes a certification that the person whose name is on the form is a foreign corporation.

Identifying a U.S. digital asset broker

For sales of digital assets, you can treat a customer as an exempt recipient if you receive a properly completed exemption certification on Form W-9 that shows the customer is a U.S. digital asset broker. Until the Form W-9 includes the appropriate exemption certification, see Notice 2024-56 for information regarding how a U.S. digital asset broker can document that another broker is a U.S. digital asset broker.

Exemption certificate

A broker may require an exempt recipient to file a properly completed Form W-9 or similar form. A broker may treat an exempt recipient that fails to do so as a recipient that is not exempt. See part J in the current General Instructions for Certain Information Returns for more information.

Statements to Recipients

If you are required to file Form 1099-DA, you must provide a statement to the recipient.

For more information about the requirement to furnish a statement to the recipient, see part M in the current General Instructions for Certain Information Returns.