Form 1099-DA: Rules for Reporting Digital Assets
Form 1099-DA is a new crypto tax form designed to expand how digital asset activity is reported to the IRS. As exchanges and platforms begin issuing this form, many crypto users are seeing reported numbers that do not fully reflect what actually happened across their wallets, trades, and on-chain activity.
- Understand what Form 1099-DA does and does not include
- Align exchange-reported data with your complete activity
Form 1099-DA is not a complete crypto tax report. It is a broker-level summary that often lacks context, cost basis accuracy, and visibility into activity outside a single platform.
We Make it Easy as 1-2-3
Why Work With Count On Sheep
Form 1099-DA Expertise
We specialize in aligning exchange-reported 1099-DA data with your complete digital asset activity, identifying gaps and inconsistencies that broker-level reporting cannot capture.
Human-Verified Reconciliation
Every transaction is examined by specialists experienced with complex digital asset activity. This reduces errors from broker-level limitations.
Accurate Filing Support
Filing based solely on Form 1099-DA can result in overstated gains, missing losses, or incorrect income classification. Our reconciliation ensures accuracy.
How Count On Sheep Supports Form 1099-DA Reporting
Count On Sheep does not file tax returns or provide tax advice. We support Form 1099-DA reporting by preparing accurate underlying documentation.
Data Collection
We gather Form 1099-DA data along with wallet history, exchange exports, and on-chain records to build a complete picture.
Activity Consolidation
All transactions are organized into a unified dataset that reflects full digital asset movement, not just what a single platform reported.
Transaction Reconciliation
Each transaction is examined to correct classification errors, missing cost basis, double-counting from misclassified transfers, and restore missing context.
Cross-Platform Alignment
Form 1099-DA relies on what a single platform can see. We align reported data with activity across all wallets, exchanges, and protocols.
Accurate Documentation
You receive documentation that supports accurate reporting alongside Form 1099-DA, ensuring filed numbers reflect what actually occurred.
Our Process for Form 1099-DA Support

Collect Available Records
We gather Form 1099-DA data along with wallet history, exchange exports, and on-chain records.
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Consolidate Activity
All transactions are organized into a unified dataset that reflects full digital asset movement.

Reconcile Transactions
Each transaction is examined to correct classification errors and restore missing context.

Verify Accuracy
Reconciled data is reviewed for completeness and internal consistency.
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Deliver CPA-Ready Reports
You receive documentation that supports accurate reporting alongside Form 1099-DA.
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File Through Your CPA or Tax Software
Use your completed reports with your CPA or preferred tax software.
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Speak With a Crypto Tax Expert
Begin with a free consultation led by a Senior Crypto Tax Professional, or upgrade to a paid session with a Former Big 4 Blockchain Manager for a detailed discussion around your crypto portfolio's needs.
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Frequently Asked Questions
Form 1099-DA is an IRS reporting form used by certain digital asset platforms to report customer activity. It provides a partial snapshot of activity reported by a specific platform.
No. Form 1099-DA does not replace your full crypto tax reporting. It provides what a single platform can see, which often does not include accurate cost basis, DeFi activity, or cross-platform transfers.
This is common. 1099-DA data often has missing cost basis, double-counted transfers, and incomplete histories. Reconciliation corrects these issues.
You may receive Form 1099-DA if you used a platform that qualifies as a reporting digital asset broker, including buying, selling, or trading digital assets on a supported platform.
Yes. Your data stays under your control. Our U.S.-based team works within secure systems, and we never request private keys.
Book a consultation through our secure portal. A crypto tax specialist will review your 1099-DA situation and guide you through next steps.