BitGo Enhances Tax Compliance with New IRS 1099-DA Reporting
Effective January 1, 2025, the IRS mandates that all digital asset brokers, which includes firms like BitGo, begin reporting transaction data on the new Form 1099-DA, Digital Asset Proceeds From Broker Transactions. This marks a pivotal shift in the regulatory treatment of digital assets, aligning them more closely with traditional securities reporting standards.
To help ensure our clients - ranging from funds and financial institutions to corporations - receive accurate, reliable and auditable tax documents, BitGo has partnered with TaxBit, the leading tax and accounting compliance platform purpose built for the digital asset economy, to power digital asset cost basis calculations, and Form 1099 reporting and filing.
Key Reporting Phases for Our Clients
BitGo is committed to simplifying compliance and providing complete data for all necessary tax filings.
For the 2025 Tax Year (Forms Issued in Early 2026):
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Gross Proceeds Reporting: BitGo will report gross proceeds from the sale and exchange of digital assets using the new Form 1099-DA.
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Cost Basis Note: Due to transitional relief from the IRS, the Form 1099-DA for the 2025 tax year will not include cost basis information.
What’s Coming in the 2026 Tax Year and onwards (Forms Issued in Early 2027):
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Full Basis Reporting: For the 2026 tax year, the reporting requirements will expand. The Form 1099-DA is scheduled to include both gross proceeds and cost basis information for digital assets acquired on or after January 1, 2026, where we have full visibility into the acquisition details.
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Mandatory Tax Status Confirmation: All non-exempt U.S. clients will need to ensure their tax status and Taxpayer Identification Number (TIN) are fully certified on file to avoid potential backup withholding on future reportable proceeds.
Other Potential 1099 Forms from 2025 Digital Asset Activity
Depending on the specific services and activities you engage in, you may receive other forms in 2026 to report different types of income earned from digital assets this year, 2025. These forms report income that is generally considered "ordinary income" rather than capital gains.
Disclaimer: BitGo does not offer legal, tax, accounting, or investment advisory services. The information contained herein is for informational and marketing purposes only and should not be construed as legal, tax, or investment advice. You should consult with your own legal, tax, and investment advisor for questions about your specific circumstances.
About BitGo
BitGo is the digital asset infrastructure company, delivering custody, wallets, staking, trading, financing, and settlement services from regulated cold storage. Since our founding in 2013, we have been focused on accelerating the transition of the financial system to a digital asset economy. With a global presence and multiple regulated entities, BitGo serves thousands of institutions, including many of the industry's top brands, exchanges, and platforms, and millions of retail investors worldwide. For more information, visit www.bitgo.com.
©2025 BitGo, Inc. (collectively with its parent, affiliates, and subsidiaries, “BitGo”). All rights reserved. BitGo Bank & Trust, National Association (“BitGo Bank & Trust”) is a national trust bank chartered and regulated by the Office of the Comptroller of the Currency (OCC). BitGo Bank & Trust is a wholly-owned subsidiary of BitGo Holdings, Inc., a Delaware corporation headquartered in Palo Alto, California. Other BitGo entities include BitGo, Inc. and BitGo Prime LLC, each of which is a separately operated affiliate of BitGo Bank & Trust.
BitGo does not offer legal, tax, accounting, or investment advisory services. The information contained herein is for informational and marketing purposes only and should not be construed as legal, tax, or investment advice. You should consult with your own legal, tax, and investment advisor for questions about your specific circumstances.
Digital assets are subject to a high degree of risk, including the possible loss of the entire principal amount invested. Past performance and illustrative examples do not guarantee future results. The value of digital assets can fluctuate significantly and may become worthless. No BitGo communication is intended to imply that any digital asset services are low-risk or risk-free. BitGo is not a registered broker-dealer and is not a member of the Securities Investor Protection Corporation (“SIPC”) or the Financial Industry Regulatory Authority (“FINRA”). Digital assets held in custody are not guaranteed by BitGo and are not subject to the insurance protections of the Federal Deposit Insurance Corporation (“FDIC”) or SIPC. Custody and other digital asset services are subject to eligibility, jurisdictional, and regulatory restrictions. Availability of specific products and services may vary by location and entity.
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