LEGAL DISCLAIMER
Important Notice: This information is for educational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex, and everyone's situation is unique. The information provided here is based on current IRS regulations as of November 2025 and is subject to change.
This article provides general information about Form 1099-DA reporting for multiple cryptocurrencies and stablecoins. This should not be relied upon as tax advice. Please consult a qualified tax professional, certified public accountant (CPA), or tax attorney for advice specific to your personal circumstances and tax situation.
This content is designed to help you understand complex reporting scenarios, but you remain responsible for ensuring compliance with all applicable tax laws.
For official IRS guidance, please visit www.irs.gov/Form1099DA or consult with a tax professional.
Understanding Multiple 1099-DAs and Stablecoins
One of the most common questions we're receiving is: "How many 1099-DA forms will I receive?" This article provides a deep dive into this topic, with real-world examples to help you understand exactly what to expect.
The Fundamental Principle: One Form Per Asset Type
Here's the core concept you need to understand:
Each type of cryptocurrency is treated as a separate asset for tax purposes, similar to how different stocks are treated separately.
Just as Apple stock and Microsoft stock get reported on separate forms, Bitcoin and Ethereum trades get reported on separate 1099-DAs.
Why Separate Forms?
The IRS requires separate reporting because each cryptocurrency has distinct characteristics:
Tax Identification: Each cryptocurrency has its own:
Digital Token Identifier Foundation (DTIF) code (like a stock ticker)
Price history
Acquisition dates
Cost basis calculations
Gain/Loss Tracking: Each cryptocurrency generates separate:
Short-term vs. long-term calculations
Individual cost basis determinations
Specific gain or loss amounts
Regulatory Clarity: Separate reporting:
Prevents confusion between different assets
Allows precise matching of buys and sells
Enables accurate tax return preparation
Reduces errors and IRS notices
Real-World Scenarios
Let's walk through detailed examples to show exactly what you can expect.
Scenario 1: The Bitcoin Maximalist
Meet David:
Only trades Bitcoin in 2025
Makes 50 Bitcoin transactions throughout the year
Never touches any other cryptocurrency
Forms David receives:
1 Form 1099-DA for Bitcoin
Shows all 50 Bitcoin transactions aggregated
Total proceeds from all Bitcoin sales
Key takeaway: Multiple transactions in the same cryptocurrency = one form for that cryptocurrency.
Scenario 2: The Diversified Trader
Meet Sarah:
Active trader who diversifies across multiple cryptocurrencies
2025 trading activity:
- Bitcoin: 30 transactions
- Ethereum: 25 transactions
- Litecoin: 15 transactions
- Cardano: 10 transactions
- Solana: 8 transactions
- Polygon: 5 transactions
Forms Sarah receives:
Form 1 (1099-DA): Bitcoin (all 30 transactions aggregated)
Form 2 (1099-DA): Ethereum (all 25 transactions aggregated)
Form 3 (1099-DA): Litecoin (all 15 transactions aggregated)
Form 4 (1099-DA): Cardano (all 10 transactions aggregated)
Form 5 (1099-DA): Solana (all 8 transactions aggregated)
Form 6 (1099-DA): Polygon (all 5 transactions aggregated)
Total**: **6 separate 1099-DA forms
Tax filing: Sarah provides all 6 forms to her tax preparer, who enters transactions from each form onto Form 8949, then summarizes on Schedule D.
Key takeaway: Trading 6 different cryptocurrencies = 6 different forms, regardless of transaction volume.
Scenario 3: The Multi-Exchange Trader
Meet Elena:
Trades on multiple cryptocurrency exchanges
2025 trading activity across three platforms:
Our Exchange:
Bitcoin: $20,000 in sales
Ethereum: $15,000 in sales
Exchange B:
Cardano: $8,000 in sales
Exchange C:
Solana: $12,000 in sales
Polygon: $5,000 in sales
Forms Elena receives:
From Our Exchange:
Form 1 (1099-DA): Bitcoin - $20,000 proceeds
Form 2 (1099-DA): Ethereum - $15,000 proceeds
From Exchange B:
Form 3 (1099-DA): Cardano - $8,000 proceeds
From Exchange C:
Form 4 (1099-DA): Solana - $12,000 proceeds
Form 5 (1099-DA): Polygon - $5,000 proceeds
Total**: **5 separate 1099-DA forms from 3 different exchanges
Tax filing: Elena must:
Collect forms from all three exchanges
Verify she received all expected forms
Report transactions from all 5 forms on her tax return
Key takeaway: Each exchange sends separate forms for each cryptocurrency you traded on that platform.
Scenario 4: The Strategic Holder
Meet Robert:
Bought Bitcoin and Ethereum in January 2025
Held all year without selling
No sales or exchanges
Forms Robert receives:
Zero 1099-DA forms
Why? Form 1099-DA only reports sales, exchanges, and dispositions. Purchases and holdings are not reported.
Tax obligation: Robert has no taxable events from simply holding cryptocurrency, so nothing to report on his tax return related to these holdings.
Key takeaway: You only receive forms for cryptocurrencies you sold or exchanged, not for purchases or holds.
Understanding Stablecoin Reporting
Stablecoins receive special treatment under IRS regulations. Let's break down how this works.
What Are "Qualifying Stablecoins"?
Qualifying stablecoins are digital assets that:
Are designed to maintain a stable value pegged to a specific fiat currency
Remain reliably pegged throughout the tax year
Most commonly: USDC, USDT (when properly pegged)
Why special treatment? The IRS recognizes that stablecoins are often used for:
Payments and transfers
Temporary holding between trades
Moving value between exchanges
Day-to-day transactions
Rather than generating extensive paperwork for routine transactions, the IRS created a simplified reporting system.
The $10,000 De Minimis Threshold
Here's how stablecoin reporting works:
Under $10,000 in annual sales:
Exchanges are not required to report on Form 1099-DA
You will not receive a form from us
You still must report these transactions on your tax return
$10,000 or more in annual sales:
Exchanges must report on Form 1099-DA
Reporting is done in aggregate (total for the year)
You will receive a form showing total proceeds
Important: The $10,000 threshold applies per stablecoin type. USDC and USDT are counted separately.
Stablecoin Scenarios
Let's look at detailed examples:
Scenario 1: Alex - Under the Threshold
Alex's 2025 USDC activity:
January: Bought $2,000 USDC, sold $2,000 USDC
March: Bought $1,500 USDC, sold $1,500 USDC
July: Bought $3,000 USDC, sold $3,000 USDC
October: Bought $1,000 USDC, sold $1,000 USDC
Total USDC sales: $7,500
Forms Alex receives:
No 1099-DA for stablecoins (under $10,000 threshold)
Tax obligation:
Alex must still report all $7,500 in USDC transactions
Must calculate and report any gains or losses
Responsible for tracking own records
How Alex calculates gains/losses:
If Alex always bought and sold USDC at $1.00:
No gain, no loss (typical for properly pegged stablecoins)
But if USDC fluctuated: small gains or losses are possible
Key takeaway: Under-threshold stablecoin trading doesn't generate a form but still requires tax reporting.
Scenario 2: Jordan - Over the Threshold
Jordan's 2025 USDC activity:
Makes approximately 100 USDC transactions throughout the year
Total USDC sales: $25,000
Forms Jordan receives:
1 Form 1099-DA for USDC
Shows aggregate proceeds: $25,000
Does not list all 100 individual transactions
What the form shows:
Cryptocurrency: USDC (qualifying stablecoin)
Aggregate reporting indicator: Yes
Total proceeds: $25,000
Cost basis: May or may not be included (optional for 2025)
Key takeaway: Over-threshold stablecoin trading generates one aggregate form per stablecoin type.
Record-Keeping Requirements
Given the complexity of multiple forms and stablecoin thresholds, good record-keeping is essential.
What to track for each cryptocurrency:
Purchase Information:
- Date acquired
- Amount paid (including fees)
- Number of units purchased
- Exchange used
- Transaction ID
Sale Information:
- Date sold
- Amount received (minus fees)
- Number of units sold
- Exchange used
- Transaction ID
Exchange Information:
- Record of which crypto traded on which exchange
- Confirmation emails
- Account statements
Why this matters:
Fills gaps if 1099-DA doesn't include cost basis
Necessary for stablecoin trades under $10,000 threshold
Required for transferred assets
Helps verify accuracy of received forms
Common Misconceptions
Myth 1: "If I made 100 Bitcoin trades, I'll get 100 forms."
Reality: You'll get ONE form for Bitcoin showing aggregate information for all 100 trades.
Myth 2: "If I trade the same two cryptos back and forth, I'll only get 2 forms."
Reality: Correct! One form per cryptocurrency type, regardless of how many times you trade them.
Myth 3: "Stablecoin trades aren't taxable if under $10,000."
Reality: Wrong! They're still taxable. The $10,000 threshold affects our reporting, not your tax obligation.
r not.
Myth 5: "Transferring crypto between my own wallets is a sale."
Reality: Transfers between your own wallets aren't taxable events and won't appear on 1099-DA.
Tips for Managing Multiple Forms: Best Practices
Organization System:
Step 1: Track Expected Forms
Create a spreadsheet:
Myth 4: "I only need to report what's on my 1099-DAs."
Reality: You must report ALL crypto transactions, whether they're on a 1099-DA o
Exchange | Cryptocurrency | Expected Form? | Received? |
Our Exchange | Bitcoin | Yes | ☐ |
Our Exchange | Ethereum | Yes | ☐ |
Exchange B | Cardano | Yes | ☐ |
Step 2: Collect as Forms Arrive
Download immediately
Save with consistent naming: "2025_1099DA_[Exchange]_[Crypto].pdf"
Store in dedicated tax folder
Step 3: Verify Completeness
By mid-February 2026:
Check all boxes on your tracking sheet
Contact exchanges if forms are missing
Verify each form against your records
Step 4: Prepare for Tax Filing
Organize forms by exchange, then by cryptocurrency
Create summary sheet of all transactions
Gather records for non-reported transactions (stablecoins under threshold, etc.)
Questions & Answers
Q: If I trade Bitcoin-Ethereum-Bitcoin, how many forms?
A: Two forms (one for Bitcoin, one for Ethereum).
Q: Do all exchanges report the same way?
A: They follow the same IRS rules, but presentation may vary slightly.
Q: What if I only exchanged crypto for crypto, never cashing out to dollars?
A: You'll still receive 1099-DAs. Crypto-to-crypto exchanges are taxable events.
Q: Can I combine multiple forms onto one line of my tax return?
A: No. Each form requires separate reporting according to IRS rules.
The Bottom Line
Understanding multiple 1099-DAs and stablecoin reporting isn't as complicated as it first seems:
Key Principles:
One form per cryptocurrency type you traded
Stablecoins under $10,000 per exchange don't generate forms
Still report everything on your tax return
Each exchange sends separate forms
Action Steps:
Know which cryptocurrencies you traded in 2025
Estimate how many forms to expect
Collect forms from all exchanges
Keep records for non-reported transactions
Work with tax professional if it gets complex
The system is designed to make crypto taxes more transparent and easier to report—once you understand how it works!
Additional Resources:
IRS Form 1099-DA Instructions: www.irs.gov/instructions/i1099da
IRS Publication 544 (Sales and Other Dispositions): www.irs.gov/Pub544
Treasury Final Regulations (T.D. 10000): Available at www.federalregister.gov
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Need Help?
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Contact our customer support
For tax advice:
Consult a qualified tax professional who understands cryptocurrency taxation