Filer Instructions — Specific
Truncating recipient's taxpayer identification number (TIN) on payee statements
Pursuant to Regulations section 301.6109-4, all filers of this form may truncate a recipient’s TIN (social security number (SSN), individual taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or employer identification number (EIN)) on payee statements. Truncation is not allowed on any documents the filer files with the IRS. A filer's TIN may not be truncated on any form. See part J in the current General Instructions for Certain Information Returns.
CUSIP Number
For transactional reporting by brokers of a tokenized security under Regulations section 1.6045-1(c)(8)(i)(D)(1), enter the CUSIP number or other applicable identifying number of the digital asset.
Account Number
The account number is required if you have multiple accounts for a recipient for whom you are filing more than one Form 1099-DA.
Additionally, the IRS encourages you to designate an account number for all Forms 1099-DA that you file. See part L in the current General Instructions for Certain Information Returns.
The account number requested here is the number assigned by the broker to a customer, not the customer's wallet address.
Applicable Checkbox on Form 8949
Use this box to enter a one-letter code from the following list that will assist the recipient in reporting the transaction on Form 8949 and/or Schedule D (Form 1040).
Code G
This code indicates a short-term transaction for which the cost or other basis is being reported to the IRS.
Code H
This code indicates a short-term transaction for which the cost or other basis is not being reported to the IRS.
Code J
This code indicates a long-term transaction for which the cost or other basis is being reported to the IRS.
Code K
This code indicates a long-term transaction for which the cost or other basis is not being reported to the IRS.
Code Y
Use this code to report a transaction if you cannot determine whether the recipient should check box H or box K on Form 8949 because the holding period is unknown.
Box 1a. Code for Digital Asset
Enter the nine alphanumeric characters digital token identification issued by the Digital Token Identification Foundation (DTIF). See https://dtif.org/registry-search. If the digital asset is not registered with DTIF, enter “999999999.”
Box 1b. Name of Digital Asset
Enter the full name of the digital asset for which the amounts are being reported. If you entered a DTIF digital token identification in box 1a, enter the name that matches the DTIF registration.
Box 1c. Number of Units
Enter the number of digital asset units sold, exchanged, or otherwise disposed of in the transaction to 18 decimal places.
Box 1d. Date Acquired
Enter the acquisition date of the digital asset sold in MM/DD/YYYY format.
For example, if the acquisition date is May 24, 2025, enter 05/24/2025.
Leave this box blank if:
The digital assets sold were acquired on a variety of dates, or
You check box 9 and you do not know the acquisition date or you choose to not complete box 1d.
Box 1e. Date Sold
Enter the date of the digital asset sale in MM/DD/YYYY format.
Box 1f. Proceeds
Enter the gross proceeds from the sale of digital assets. Show a loss, such as one from a closing transaction on a written option or forward contract, as a negative amount by enclosing it in parentheses. Total proceeds may include cash, the value of services, digital assets, or other property received in exchange for the disposed digital assets.
You must reduce the proceeds by digital asset transaction costs, including transaction fees, commissions, and transfer taxes related to the sale.
For digital assets sold because of the exercise of an option granted or acquired before 2014, you may, but are not required to, take into account option premiums in determining gross proceeds if that is consistent with your books. For digital assets sold because of the exercise of an option granted after 2013 or for the treatment of an option granted or acquired after 2013, see Regulations section 1.6045-1(m) for details.
If you reduce gross proceeds by option premiums, check “Net proceeds” in box 3a. Otherwise, check “Gross proceeds” in box 3a.
For sales reported using the optional reporting method for specified NFTs, if you are reporting gross proceeds attributable to first sales by a creator or minter, report those sales in box 11c and leave box 1f blank.
Box 1g. Cost or Other Basis
Enter the adjusted basis of any digital asset sold unless the digital asset is not a covered security and you check box 9 and choose not to complete box 1g. If you check box 9 and are not reporting basis, leave box 1g blank. Enter -0- in box 1g only if the digital asset sold actually had a basis of zero.
In the case of an exchange of digital assets, the digital asset transaction costs paid by the taxpayer to effect the exchange are allocable generally to the disposition of the transferred digital assets for purposes of determining basis. In the case of a sale of digital assets in exchange for other digital assets differing materially in kind or extent, for which the acquired digital assets are withheld to pay the digital asset transaction costs to effect the original transaction, the total digital asset transaction costs paid by the taxpayer to effect both the original transaction and any dispositions of digital assets to pay such costs are allocable exclusively to the original transaction. See Regulations sections 1.1001-7 and 1.1012-1(h)(2)(ii)(C).
Identification of digital assets.
If the customer has acquired digital assets on different dates or at different prices and sells less than the entire position in the digital assets, report the sale according to the customer's adequate and timely identification of the digital assets to be sold. If no identification is provided at or prior to the time of the sale, you generally must first report the sale of the earliest units of the digital asset purchased by the customer. You may take into account customer-provided acquisition information, described in Regulations section 1.6045-1(d)(ii)(B)(4), for purposes of determining when a customer purchased a digital asset. If you do not take customer-provided acquisition information into account for that purpose, treat digital assets transferred into the customer's account as acquired as of the date and time of the transfer.
Average basis method.
The average basis method is only available for digital assets that are also a tokenized security. The security has to be one for which the average basis method is permitted under section 1012(c) or (d).
Box 1h. Accrued Market Discount
For digital assets that are covered securities and also debt instruments for federal income tax purposes, enter the amount of accrued market discount in box 1h.
Box 1i. Wash Sales Loss Disallowed
Wash sales.
Losses from wash sales of tokenized securities must be reported. See Regulations section 1.6045-1(c)(8)(i)(D)(1). For such tokenized securities treated as stock or securities under section 1091, report wash sale loss amount disallowed. You must report any loss disallowed under section 1091 if both the sale and purchase transactions occur in the same account with respect to such digital assets with the same CUSIP number. You are permitted, but are not required, to report in box 1i all loss disallowed under section 1091. For example, you may report a disallowed loss even though a digital asset that is also a stock or security is sold in one account and repurchased in a different account. Increase the adjusted basis of the acquired digital asset by the amount of the disallowed loss reported in box 1i.
You also do not have to apply the wash sale rules if:
• The purchased digital asset is transferred to another account before the wash sale,
• The purchased digital asset was purchased in another account and later transferred into the account from which the digital asset was sold,
• The digital assets are treated as held in separate accounts, or
• The customer has notified you in writing (including in an electronic format) that the customer has made a valid and timely mark-to-market election under section 475 and identified the account from which tokenized securities were sold as containing only securities subject to the election.
For more details, see Regulations section 1.6045-1(d)(6)(iii).
Example
In September 2025, your customer Alex buys for $1,000 100 units of digital asset ABC that is a tokenized security treated as stock or securities under section 1091. In October 2025, Alex sells the 100 units for $600. Within 30 days of the sale, Alex buys 75 units of digital asset ABC with the same CUSIP number in the same account. Since Alex’s loss is $400 ($1,000 minus $600), but the loss on 75 units is disallowed, Alex’s disallowed loss is $300. Report the $600 gross proceeds from the sale in box 1f, $1,000 basis in box 1g, and $300 wash sale loss disallowed in box 1i. The $300 disallowed loss is added to Alex’s basis in the newly purchased 75 units.
Box 2. Check if Basis Reported to IRS
Check this box if: You are not checking box 9, or You are checking box 9 but are reporting basis to the IRS in box 1g anyway.
Box 3a. Reported to IRS
See Box 1f. Proceeds, earlier.
Box 3b. Check if Proceeds Are From a Qualified Opportunity Fund (QOF)
Check the “QOF” box if you are reporting a disposition of an interest in a QOF.
Box 4. Federal Income Tax Withheld
Enter backup withholding. For example, persons who have not furnished their TIN to you in the manner required are subject to withholding on certain amounts required to be reported on this form. This is called backup withholding. For more information on backup withholding, including the rate, see part N in the current General Instructions for Certain Information Returns and go to IRS.gov/Form1099DA. For information on transitional relief from backup withholding, see Notice 2024-56.
Use Form W-9 to request the TIN of the recipient. For foreign recipients, request the recipient instead complete the appropriate Form W-8. See the Instructions for the Requester of Forms W-8BEN, W-8BEN-E, W-8ECI, W-8EXP, and W-8IMY and Regulations section 1.6045-1(g)(4) for when a broker may treat a customer as an exempt foreign person.
Box 5. Check if Loss Is Not Allowed Based on Amount in 1f
See Acquisition of control or substantial change in capital structure, earlier
Box 6. Gain or Loss
If the digital assets sold, exchanged, or otherwise disposed of are covered securities, or if they are noncovered securities and you check box 9 but choose to complete box 6, determine whether the gain or loss is short-term or long-term under section 1222, and whether any portion of the gain or loss is ordinary. In making the determination, you must do the following.
Apply the normal rules for property acquired from a decedent to the digital assets.
Apply the normal rules for property acquired as a gift to the digital assets.
If a customer acquired digital assets that are stock or securities that caused a loss from a sale of other digital assets that are stock or securities to be nondeductible under section 1091, use the rules in section 1223(3) to determine the holding period of the acquired digital assets.
Except as provided below, in addition to checking the applicable short-term or long-term box, you are required to check the “Ordinary” checkbox if all or a portion of the gain or loss may be ordinary. You may not report both short-term and long-term gain or loss on the same Form 1099-DA.
For transactions that are denominated in a currency other than the U.S. dollar, brokers must check the "Ordinary" checkbox because these transactions may be section 988 transactions to the customer. Because a customer may make an election to treat gains and losses on certain section 988 transactions as capital, the broker must also check the short-term or long-term box to indicate whether any portion of the gain or loss may be short-term or long-term.
You are not required to consider other transactions, elections, or events occurring outside the account when determining whether the gain or loss on the sale is short-term or long-term.
Box 7. Check if Only Cash Proceeds Were Paid in the Transaction
Check this box if only cash (that is, U.S. dollars or any convertible foreign currency issued by a government or central bank) proceeds were paid in the transaction.
Check this box even if you have combined the reporting of an underlying transaction with the report of the transaction to pay broker fees, as described in General Reporting, earlier.
Box 8. Check if Broker Relied on Customer-Provided Acquisition Information
Check this box if you receive or previously received customer-provided acquisition information to identify which digital assets of a type were sold, exchanged, or otherwise disposed of, even if the customer-provided acquisition information was not used for the particular digital asset lot reported on this form. If the customer previously sold, exchanged, or otherwise disposed of all the digital assets for which they provided that customer-provided acquisition information, you do not need to check this box.
Box 9. Check if Digital Asset Is a Noncovered Security
You may check this box if reporting the sale of a noncovered security. Do not check this box if reporting the sale of a covered security.
If you check this box, 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), and 6, you are not subject to penalties under sections 6721 and 6722 for failure to report or furnish the information provided in boxes 1d, 1g, 1h (if applicable), 1i (if applicable), and 6 correctly. For returns filed for sales prior to January 1, 2026, you are entitled to this penalty relief for sales of both noncovered securities and covered securities if you voluntarily provide this information without regard to whether you check box 9.
Box 10. Reserved
Reserved for future use.
Box 11a. Reason Digital Asset Is Eligible for an Optional Reporting Method
If you are reporting sales of a digital asset eligible for an optional reporting method, check the appropriate box, if applicable, to indicate which type of digital asset is being reported. If you check “Qualifying stablecoins,” you must complete box 11b. If you check “Specified NFTs,” you must complete box 11b and, if applicable, box 11c. If you do not check one of these boxes, you do not have to complete boxes 11b or 11c.
Box 11b. Number of Transactions
If you are using the optional reporting method for reporting the designated sales of qualifying stablecoins or specified NFTs, enter the number of transactions reported on this form.
Box 11c. Proceeds From a Primary Sale
If you are reporting the sale of specified NFTs, enter the gross proceeds attributable to first sales by a creator or minter. Do not enter the gross proceeds attributable to the first sales by a creator or minter in Box 1f.
Box 12a. Number of Units Transferred in
If you are reporting the sale of digital asset units that were transferred into a custodial account, enter the number of units to 18 decimal places.
Box 12b. Transfer-in Date
If digital assets were transferred into a custodial account, enter the date of such transfer-in in MM/DD/YYYY format. Leave this box blank if the digital assets were transferred in on a variety of dates.
Box 13. Reserved
Reserved for future use.
Boxes 14 Through 16. State Information
These boxes may be used by filers who participate in the Combined Federal/State Filing Program and/or who are required to file paper copies of this form with a state tax department. See Pub. 1220 for more information regarding the Combined Federal/State Filing Program. These boxes are provided for your convenience only and need not be completed for the IRS. Use the state information boxes to report payments for up to two states. Keep the information for each state separated by the dash line. If you withheld state income tax on this payment, you may enter it in box 16. In box 14, enter the abbreviated name of the state. In box 15, enter the filer's state identification number. The state number is the filer's identification number assigned by the individual state.
If a state tax department requires that you send them a paper copy of this form, use Copy 1 to provide information to the state tax department. Give Copy 2 to the payee for use in filing the payee's state income tax return.