Crypto cost-basis reporting starts with 2026 sales — get the free 1099-DA checklist or book a free 15-minute call
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Your 2026 Form 1099-DA will show what you sold, not what you paid.

For crypto bought before 2026, or moved between wallets, the cost-basis box usually comes back blank. See what the IRS could propose if it treats that blank as zero, and how much your own records would need to prove.

Your 2026 crypto sales

Rough numbers are fine. Nothing is saved unless you ask for your action plan.

$
Every sale, swap, or spend of crypto, at its dollar value on the day it happened.
$
Your cost basis: purchase price plus fees.
80%
Brokers report basis only for coins bought in 2026 or later and never moved out. Everything else is “noncovered,” and the basis box stays blank.
How long you held what you sold
Your top federal tax bracket
Not sure? Most single filers earning $100k–$250k are in the 22–24% range.
Check any that apply to you

Tax the IRS could propose on your noncovered sales

$13,260

If your return doesn’t back up your basis, a matching notice can calculate tax as if you paid $0.

What you’d likely owe on those sales
$3,900
Gap your records must prove
$9,360

Plus up to $1,872 in accuracy-related penalties, before interest.

Your 1099-DA readiness68

Exposed. You can fix this, but start before the forms arrive.

Free action plan

Get your action plan.

The records to pull, the forms your situation touches, and what to do before your 1099-DAs arrive in early 2027. It opens right on this page, with the 1099-DA Readiness Checklist to download.

Occasional 1099-DA updates through the 2027 filing season; unsubscribe any time. We never sell or share your email. Privacy policy.

Your action plan

Based on what you entered. Work through these in order.

    Book a free 15-minute call Download the readiness checklist

    Calls are with Samuel Oduro, EA, an IRS Enrolled Agent formerly at EY and PwC who represents crypto investors before the IRS.

    How the gap works

    Why a blank box turns into a tax bill.

    Want the full walkthrough? Read the box-by-box 1099-DA guide.

    Why the basis box is blank

    Starting with 2026 sales, brokers report your cost only for “covered” coins: bought in 2026 or later and held at that same broker until you sold. Coins bought earlier, or transferred in, are noncovered.

    How a notice happens

    The IRS matches the proceeds on your 1099-DA against your return. If the sale isn’t reported, or the basis isn’t supported, an automated notice can propose tax on the full proceeds.

    How you close the gap

    Report noncovered sales on Form 8949 with your own basis, backed by transaction history. For coins held before 2025, basis also has to follow the wallet-by-wallet rules in Rev. Proc. 2024-28.

    This calculator gives an educational estimate of federal income tax only. It uses simplified rates, assumes your noncovered coins carry the same basis ratio as the rest, and ignores state tax, interest, deductions, and loss limits. General information, not tax advice; using it doesn’t create a client relationship.