If you’ve just received a 1099-DA from an exchange like Coinbase, you’re not alone.
This is the first year US investors have seen this form – and yes, the IRS gets the same copy you do.
It’s new, it sounds serious, and for a lot of people…it’s kinda confusing.
But don’t soil your pants just yet – it’s not something to panic about.
On the other hand, it IS something you need to understand. Especially if your crypto life spans more than one platform.
And that’s exactly where Summ can make this whole process a lot smoother.
Let’s break it all down:
What The Heck Is A 1099-DA?
The 1099-DA is a new IRS tax form specifically for digital assets.
Starting this year, US exchanges are required to report your gross proceeds from your digital asset sales to both you and the IRS – similar to the 1099-B that stock brokers have issued for decades…
It generally covers crypto sales, trades and disposals you made on that exchange.
Stuff like selling Bitcoin for dollars, swapping one token for another, and some qualifying stablecoin transactions.
But what it DOESN’T cover is just as important…
It won’t include your DeFi activity, DEX trades, wallet-to-wallet transfers, or transactions on other platforms. It only shows what happened on that specific exchange.
So right away, it’s only a partial picture.
The Cost Basis Catch
Here’s the main part that trips people up: cost basis.
What is cost basis?
It’s what you originally paid for your crypto. You only owe tax on your profit – not the total sale amount.
But if you transferred assets into Coinbase from somewhere else, the 1099-DA may list the cost basis as “Unknown,” or even zero.
That’s not an error. The exchange simply doesn’t know what you paid originally.
And without a cost basis, it’s impossible to calculate your true gain or loss. That means if you don’t reconstruct it properly, you risk overpaying.
That’s why this form matters.
What To Do When You Receive A 1099-DA?
First: review it carefully. Make sure the sales and trades listed look accurate. Check that the transactions, dates, and amounts match your own records.
Second: understand that it’s not the full story.
Why? Because If you’ve used multiple exchanges, wallets, staking platforms, NFTs, or DeFi protocols, those transactions won’t appear here.
BUT they still need to be reported.
Finally, reconcile everything before filing.
The IRS expects your tax return to reflect your complete crypto activity, not just what one exchange reported.
This is where things can get messy, fast.
How Does Summ Make This Easier?
If your crypto activity has been anything beyond “buy and sell on one app,” manual reconciliation can turn into hours of spreadsheet admin.
Summ is built specifically for this moment.
Summ's reconciliation engine tracks transactions across 3,500+ exchanges, wallets and blockchains, with deep on-chain coverage of DeFi, DEXs, bridges and complex protocols.
Instead of trying to stitch together fragmented records, you see your entire crypto history in one place – pretty cool.
More importantly, Summ reconstructs that missing cost basis across platforms.
If your 1099-DA says “Unknown,” it can trace back to your original purchase and calculate the correct gain or loss – so you’re not paying tax on inflated numbers.
It also handles classification and reconciliation, flagging transactions that need review rather than making silent assumptions.
Once everything is cleaned up, you can generate defendable, accountant-ready tax reports built on validated data, including Form 8949 and TurboTax exports.
Put simply, it turns a big broken puzzle into something that makes much better sense – without making you pull your hair out.
Try Summ, Save Stress.
The 1099-DA might feel like a pain in the butt – but it’s just crypto maturing into proper reporting.
But exchanges only see their slice of your activity. You’re the only one with the full picture, and the IRS expects that full picture on your return.
Treat the 1099-DA like a starting point, not the final answer.
And if your crypto activity is spread across multiple platforms, tools like Summ aren’t just convenient…
…They make sure you file well prepared, defendable tax reports and most importantly, without overpaying.
Best part? There’s a free version that you can try before you buy, with no sign up or bank card info needed.
Save yourself the headache. Try Summ.
