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Key Takeaways
- Coinbase Form 1099-DA is designed to report gains and losses to the IRS. Your cost basis information may be incorrect, especially if you transferred crypto from another wallet/exchange.
- If your Form 1099-DA is incorrect, consider using a crypto tax software like CoinLedger to get a complete record of your gains and losses.
What issues are Coinbase users facing with Form 1099-DA?
Incorrect cost basis
Cost basis information on Form 1099-DA can be incorrect. This isn’t Coinbase's fault. These issues arise from cryptocurrency’s transferability.
Coinbase only has visibility into transactions that took place on its own platform. If you bought crypto on another exchange and transferred it to Coinbase before selling, Coinbase has no record of what you originally paid.
Your actual gain is $65,000. However, if you simply copy and paste the numbers on Form 1099-DA, you may end up overpaying on taxes.
How do I fix missing cost basis?
To prevent this issue, you need to track your complete transaction history across your exchanges and wallets. Under IRS rules, you can calculate and report your own cost basis.
Action steps:
- Gather records from all exchanges and wallets where you've bought, sold, or transferred crypto
- Use crypto tax software to aggregate your complete transaction history and calculate accurate cost basis
- Generate a complete Form 8949 that includes all your taxable activity.
Why am I receiving my forms late?
Coinbase announced that some users will not receive their Form 1099-DA until March 19.
Wait until you receive the form before filing. If you file before your form arrives, the numbers you report may not match the proceeds numbers that Coinbase sends to the IRS.
What is Form 1099-DA?
Form 1099-DA is designed to help Coinbase and other exchanges report capital gains and losses from digital assets. The form is designed to help the IRS verify that taxpayers are reporting crypto income accurately.
At this time, Coinbase (and other exchanges) are not required to report cost basis to the IRS. Coinbase will only report your proceeds (the value of your crypto at the time of sale) to the IRS.
Who receives a Coinbase 1099-DA?
You will receive a 1099-DA if you sold/traded crypto on Coinbase in the tax year 2025. Simply buying and holding crypto does not trigger the form.
There is no minimum threshold for receiving Form 1099-DA. Some customers have reported receiving the form with as little as 2 cents in proceeds.
What’s the difference between Form 1099-MISC and Form 1099-DA?
Coinbase and other exchanges issue Form 1099-MISC and Form 1099-DA.
These are different tax forms designed to serve different purposes.
Form 1099-MISC is designed to report your ordinary income from cryptocurrency (which may include staking and interest income). You’ll receive this form if you earned more than $600 of ordinary income on Coinbase in 2025.
Meanwhile, Form 1099-DA is designed to report capital gains and losses.
What information does Coinbase report on Form 1099-DA?
Information included
- Cryptocurrency sold
- Transaction dates
- Gross proceeds from each sale
- Your account and taxpayer information
Important information not included
- Cost basis for crypto transferred from another exchange or wallet
- Activity on other platforms
- Coinbase Wallet transactions
- Coinbase Pro transactions
Remember, Coinbase has no visibility into transactions that took place on other platforms, and your tax forms do not include transactions that took place on the now-defunct Coinbase Pro. It’s your responsibility to track these transactions on your own, or use crypto tax software to calculate your gains and losses.
Why are proceeds wrong on Form 1099-DA?
In some cases, the proceeds numbers on your Coinbase Form 1099-DA may not match your records.
Typically, these discrepancies are minor and happen due to differences in price sources. The price oracle that Coinbase uses may be different from the price oracle that you use.
It’s recommended that you use the proceeds numbers on Form 1099-DA, as this is what’s been reported to the IRS.
How to calculate your capital gains
If cost basis is wrong on your Form 1099-DA, don’t panic. All you need to do is to provide an accurate record of your transactions across your wallets and exchanges to the IRS. Here’s how crypto tax software can help.
Step 1: Import your transactions
Connect your Coinbase account and any other wallets and exchanges to CoinLedger. The platform can automatically import your transactions via API or CSV file. This ensures you're capturing all of your crypto transactions, not just what appears on your 1099-DA.
Step 2: Double-check your transactions
Once you’ve connected your wallets and exchanges, you should double-check the following:
- Your transactions are classified correctly
- Proceeds from your 1099-DA match what's in the software (minor differences due to price sources are normal)
- Cost basis has been properly tracked across all platforms, including transfers
CoinLedger's reconciliation system alerts you to missing cost basis and other errors, allowing you to correct issues before generating your tax report.
Step 3: File your tax return
Download your complete tax report, including Form 8949 and Schedule D. You can send this to your accountant or export to platforms like TurboTax and H&R Block.
What if my Form 1099-DA is completely wrong?
While rare, some users have reported significant errors on their 1099-DA, such as purchases incorrectly showing as sales. If you believe your form contains errors beyond missing/incorrect cost basis:
Step 1: Don't ignore it: Calculate your actual tax liability using complete records from all your wallets and exchanges. Crypto tax software can help you generate an accurate, defensible report.
Step 2: Contact Coinbase: Request a corrected 1099-DA through Coinbase support. Document your attempts to resolve the issue. This demonstrates good faith effort if questions arise later.
Step 3: Consider filing an extension: Filing for an extension gives you more time to get a corrected form and ensure your filing is accurate.
Step 4: File with accurate information: When you file, use your correct figures on Form 8949. You can optionally attach a brief explanation noting the error on the 1099-DA and the steps you took to correct it.
Can I get a warning letter for Form 1099-DA?
Coinbase sends a copy of your Form 1099-DA to the IRS. If you don't report transactions that appear on the form, you may receive a warning letter.
It’s important to remember that the IRS focuses on complete reporting, not perfect matching. Minor discrepancies or small calculation differences are unlikely to trigger enforcement action. The IRS is more concerned with taxpayers who fail to report crypto activity entirely than those whose numbers are slightly off.
If you do receive a notice: Responding is straightforward if you've maintained good records. Provide your complete Form 8949 showing all taxable activity and explain how you calculated your figures using records from all platforms. You can include your CoinLedger capital gains report as supporting documentation.
Get started with CoinLedger
With CoinLedger, reporting your crypto taxes has never been easier. You can connect your transactions from Coinbase and hundreds of other exchanges and wallets in minutes.
CoinLedger is trusted by more than 700,000 investors around the globe.
Frequently asked questions
- When will my Coinbase Form 1099-DA arrive?
- Why is my cost basis missing?
- Does Coinbase report to the IRS?
- Do I need to report crypto even without a 1099-DA?
- What if my numbers differ from Coinbase's?
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