Digital assets (1099-DA)
Starting in 2025, “brokers” of digital assets will be required to report certain sales and exchanges on Form 1099-DA. That means gross proceeds, possibly basis, and a paper trail that ties crypto transactions back to a taxpayer ID. Translation: crypto is getting treated more like traditional brokerage activity.
Traditional contractor reporting (1099-NEC / 1099-MISC)
The core rules haven’t gone away. You’re still responsible for issuing 1099-NEC to most non-employee service providers and 1099-MISC for things like rent, royalties, certain prizes, etc. But the instructions update every year — and e-file thresholds and penalties keep tightening.
What you should be doing now
- Separate who is what:
- Contractors → 1099-NEC
- Rent / royalties → 1099-MISC
- Digital asset broker flow → 1099-DA
- Clean up W-9/W-8 collection and ID verification now, not in January.
- Track cost basis for digital assets. Do not assume the form the broker issues will perfectly match your books — you need your own records.
- Test your e-file setup before January so you’re not doing manual last-minute PDFs.
FAQ
- Do I need to send 1099-DA if I’m not actually a broker? Generally no. The 1099-DA rules apply to entities defined as brokers under the regulation.
- Is 1099-NEC/1099-MISC basically the same as last year? Mostly yes, but you should always follow the current-year instructions and thresholds.
How Black Inc can help
- 1099 cleanup: We’ll map who you paid, how, and which form applies.
- W-9/W-8 process: We’ll help you lock in clean vendor onboarding so January isn’t chaos.
- Crypto/digital asset reporting: We’ll review how you’re tracking basis and help you avoid mismatches that trigger notices.
- Filing support: We can prepare and e-file 1099s so you don’t have to build that process internally.