SPS/GZ provides expert 1099-DA outsourcing services to simplify your cryptocurrency tax reporting and help you avoid IRS penalties. Form 1099-DA, released by the IRS, standardizes digital asset tax reporting for brokers and taxpayers alike.
Form 1099-DA (Digital Asset Proceeds from Broker Transactions) is a new IRS tax form requiring brokers to report crypto, NFT, and stablecoin transactions to both the IRS and taxpayers. The aim is to bring digital asset compliance in line with traditional securities reporting.
Why is the IRS Launching Form 1099-DA? The rise of crypto activity demands greater compliance. Starting January 1, 2025, brokers must file 1099-DA for all qualifying digital asset transactions.
Is Bitcoin Taxable? Yes. Bitcoin is taxed as property, meaning gains are subject to capital gains or income tax. Using a crypto tax calculator helps track your cost basis and taxable gains.
What is included on Form 1099-DA? The form includes asset type, dates, proceeds, basis, and gain/loss data—similar to Form 1099-B.
How to Report Crypto? Form 1099-DA simplifies reporting, but individuals must still reconcile their records. Crypto tax tools assist with tracking and accuracy.
All transactions must be reported—no minimum threshold.
SPS/GZ provides complete 1099-DA outsourcing, supporting crypto compliance with secure, accurate, and timely reporting.
Q: Is Bitcoin taxable?
A: Yes. Bitcoin is treated as property by the IRS, meaning gains are taxable.
Q: How do I report crypto on taxes?
A: Use Form 1099-DA from your broker to reconcile with your own records.
Q: What is a crypto tax calculator?
A: A tool that helps track transaction history, cost basis, and gains.
Q: Who does currency conversion for 1099-DA?
A: Brokers use IRS-approved exchange rates at transaction time.
Q: What is 1099-DA outsourcing?
A: It’s the process of letting SPS/GZ handle the preparation, filing, and delivery of Form 1099-DA.
