In the first tax season under new IRS rules, brokers are required to provide 1099-DA reports showing gross proceeds from digital asset sales without cost basis. According to an August survey by Awaken Tax, 21% of 1,000 U.S. investors who have filed or plan to file for an extension are still waiting for data from exchanges and platforms. Another one in five reported that their 1099-DA form is incomplete or they are unsure about its accuracy.

In 2025, brokers report only proceeds, not cost basis

For 2025, brokers are generally required to indicate only the sale amount in the 1099-DA, not the acquisition cost. As a result, taxpayers must calculate their own gains and losses. Chris Herbst, Managing Director of Tax Reporting at CountDeFi, stated that for active traders, the reported amount "can greatly exceed actual profit, since each sale is counted at full value without considering cost basis." He added: "The gap is real; this is a record-keeping issue for taxpayers as much as it is for exchange reporting."

Tax advisors note discrepancies and gaps

Sharon Yip, founder of Crypto Tax Advisors, reports discrepancies between clients’ 1099-DA forms and the crypto tax reports prepared for them: not all 2025 transactions are included in the forms, exchanges use different statement formats, and some report cost basis for certain transactions even though it was not required for 2025. In one example involving stablecoins, a client had transactions totaling over $300,000, but the exchange’s 1099-DA listed less than $100,000 in total stablecoin proceeds.

Deadline for extensions is October 15

This is the first season under the new reporting rules. Taxpayers who filed for an extension must submit their returns by October 15.