CryptoFlowLabs Coinbase and IRS crypto tax forms, explained

Glossary and sources

Last checked 2026-10-29.

General information, not tax advice. Not affiliated with Coinbase or the IRS. The definitions summarize IRS forms and instructions; the IRS documents themselves control.

Glossary

Broker
For Form 1099-DA, "any person who, in the ordinary course of a trade or business, stands ready to effect sales of digital assets to be made by others" (IRS 1099-DA instructions, 2026). The IRS says the broker rules apply to brokers that take possession of the digital assets being sold by their customers, including operators of custodial trading platforms (IRS digital assets page).
Digital asset
For Form 1099-DA, a digital asset is "any digital representation of value that is recorded on a cryptographically secured distributed ledger" or similar technology, and is not cash (IRS 1099-DA instructions, 2026). For US tax purposes, digital assets are property, not currency (IRS digital assets page).
Gross proceeds (Form 1099-DA, box 1f)
The total received for the digital assets disposed of, which may include cash, the value of services, digital assets or other property, reduced by transaction costs such as fees and commissions (IRS 1099-DA instructions, 2026).
Cost or other basis (box 1g)
For a digital asset, "the cost to acquire the digital asset, including transaction fees, commissions, transfer taxes, and other acquisition costs" (IRS Form 8949 instructions, 2025).
Covered security
For Form 1099-DA, a digital asset acquired after 2025 for cash, stored-value cards or other digital assets (or other property or services whose disposition the broker is required to report) in an account where the broker provided custodial services, and held in that account until the broker effects the sale. Brokers must report basis for covered securities sold after 2025 (IRS 1099-DA instructions, 2026).
Noncovered security
Any digital asset that is not a covered security, including one acquired before 2026, one transferred in to the broker, or one the broker did not hold in custody when it was acquired. Basis reporting for these is voluntary, and box 9 may be checked (IRS 1099-DA instructions, 2026).
Transfer-in (boxes 12a and 12b)
Units moved into a custodial account from somewhere else. Form 1099-DA shows the number of transferred-in units sold and the transfer date (IRS 1099-DA instructions, 2026).
Customer-provided acquisition information (box 8)
Purchase dates and prices supplied by the customer, or by a transferring broker on the customer's behalf. Brokers may use it to decide which units were sold, but "not for reporting basis or acquisition dates" (IRS 1099-DA instructions, 2026; IRS broker reporting FAQ).
Qualifying stablecoin
A digital asset designed to track one government currency one-to-one, with an effective stabilization mechanism, and generally accepted as payment by others than the issuer. Under the optional reporting method, brokers report these in aggregate and need not report a customer whose designated sales total $10,000 or less for the year (IRS 1099-DA instructions, 2026).
Specified NFT
A digital asset that is indivisible and unique and does not give an interest in certain excluded property. Under the optional method, brokers need not report a customer whose specified NFT sales total $600 or less for the year (IRS 1099-DA instructions, 2026).
Applicable checkbox codes G, H, J, K and Y
G: short-term, basis reported to the IRS. H: short-term, basis not reported. J: long-term, basis reported. K: long-term, basis not reported. Y: holding period unknown. The letters G to K match the digital asset boxes on Form 8949 (IRS 1099-DA instructions, 2026).
Short-term and long-term
Short-term generally means held one year or less; long-term means held more than one year. Counting starts the day after acquisition and includes the day of disposal (IRS Form 8949 instructions, 2025).
Form 8949 and Schedule D
Form 8949 lists sales and exchanges of capital assets and reconciles them with Forms 1099-B, 1099-DA and 1099-S; its totals go to Schedule D (Form 1040). The 2025 form added boxes G to L for digital assets (IRS Form 8949 instructions, 2025).
Regulated futures contract (section 1256 contract)
Reported in aggregate on Form 1099-B, boxes 8 to 11, even when the contract is on a digital asset; a delivery of the underlying digital asset is reported on Form 1099-DA (IRS 1099-DA instructions, 2026). The Form 1099-B recipient instructions send the box 11 amount to Form 6781 (IRS Form 1099-B).
Backup withholding (box 4)
Withholding that applies, for example, when a recipient has not furnished a taxpayer identification number in the manner required. IRS Notices 2024-56 and 2025-33 give brokers relief from backup withholding on digital asset transactions that occur in 2025 and 2026 (IRS 1099-DA instructions, 2026; IRS digital assets page).
Notice 2026-20
Extends through December 31, 2026 the relief first given in Notice 2025-7: taxpayers may identify which units held at a broker were sold by recording the identification, or a standing order, in their own books and records (IRS Notice 2026-20).
Coinbase Taxes
Coinbase's tax center, where US customers see gains, losses and earned income and download reports and IRS forms from the Documents section (Coinbase tax information, archived 2026-10-13).

Sources

Every source cited on this site. IRS and OPM pages were opened on 2026-10-29. On that day help.coinbase.com answered automated requests with HTTP 403, so Coinbase pages are cited from dated Internet Archive captures, which were opened on 2026-10-29; the live pages may have changed since.

IRS and other government sources

  1. IRS, Instructions for Form 1099-DA (2026). Page last updated 30-Apr-2026.
  2. IRS, Instructions for Form 1099-DA (2025) (PDF, dated May 30, 2025).
  3. IRS, Form 1099-DA (2026), including the Instructions for Recipient (PDF).
  4. IRS, About Form 1099-DA. Page last updated 27-Jun-2026.
  5. IRS, Frequently asked questions about broker reporting. Page last updated 28-Jun-2026.
  6. IRS, Digital assets. Page last updated 02-Sep-2026.
  7. IRS, Instructions for Form 8949 (2025). Page last updated 30-Apr-2026.
  8. IRS, Form 8949 (2025) (PDF).
  9. IRS, Notice 2026-20 (PDF).
  10. IRS, Publication 1099 (2026), General Instructions for Certain Information Returns. Page last updated 30-Apr-2026.
  11. Internal Revenue Code section 6045(b), "Statements to be furnished to customers" (26 U.S.C. 6045(b)).
  12. IRS, Instructions for Forms 1099-MISC and 1099-NEC (12/2026). Page last updated 01-Jul-2026.
  13. IRS, Instructions for Forms 1099-MISC and 1099-NEC (Rev. April 2025) (PDF).
  14. IRS, Instructions for Form 1099-B (2026). Page last updated 30-Apr-2026.
  15. IRS, Form 1099-B (2026), including the Instructions for Recipient (PDF).
  16. U.S. Office of Personnel Management, Federal holidays (2027 schedule).

Coinbase help pages (Internet Archive captures)

  1. "IRS Form 1099-DA": capture of 2026-10-25. Live page: help.coinbase.com/en/coinbase/taxes/forms-reports/1099da.
  2. "Coinbase tax information": capture of 2026-10-13. Live page: help.coinbase.com/en/coinbase/taxes/general-information/tax-info.
  3. "Download your tax reports": capture of 2025-09-26. Live page: help.coinbase.com/en/coinbase/taxes/forms-reports/download-report.
  4. "Select your cost-basis accounting method": capture of 2025-10-02. Live page: help.coinbase.com/en/coinbase/taxes/tools/cost-basis-accounting.
  5. "Leverage your account statements": capture of 2025-10-02. Live page: help.coinbase.com/en/coinbase/taxes/tools/statements.