AgentTax
Pillar Guide

Form 1099-DA for AI Agents — 2026 Broker Reporting Reference

When an autonomous agent settles a digital-asset trade, the first question is not "how much gain?" — it is "who has to file a 1099-DA?" That depends on custody, not profit. This pillar covers the broker determination for agent infrastructure, the phased 2025/2026 effective dates, wallet-by-wallet basis tracking, and how to emit 1099-DA-ready records at the moment of disposition.

2025
proceeds reporting begins
2026
cost-basis reporting begins
Per-wallet
basis allocation required
61-day
§1091 wash-sale window

What is 1099-DA reporting for AI agents?

1099-DA reporting is the digital-asset broker information-return obligation created by the final §1.6045-1 regulations (T.D. 10000). A digital-asset broker files Form 1099-DA for each disposition it effects on behalf of a customer — reporting gross proceeds for sales on or after January 1, 2025, and adding cost basis for covered assets acquired on or after January 1, 2026. The question that decides whether an AI agent operator is on the hook is custody: does the agent, or the facilitator it settles through, take control of keys at any point in the flow?

This is a different question from "how much capital-gains tax does the trade create." Gain computation is the principal's problem — short-term vs long-term character, cost-basis method, and state rate. The 1099-DA obligation is the broker's problem, and it attaches by role, not by profit. A custodial facilitator that nets zero on its own book still files 1099-DAs for every customer disposition it clears.

The hard part for agent infrastructure is that the data the form needs — acquisition date, per-lot basis, per-wallet allocation — has to be captured at the moment of acquisition and disposition, not reconstructed from a chain log months later. AgentTax attaches that capture to one API call per trade and emits 1099-DA-ready fields inline.

Are you a digital-asset broker?

The 1099-DA obligation turns on custody and on whether you effect transfers for customers. Four configurations cover most agent stacks. Custody is the dividing line — if keys pass through your infrastructure, assume the obligation attaches.

Custodial facilitator / paywall
Likely a broker
A facilitator that takes custody of the buyer's or seller's keys at any point in the settle flow (CDP-style custodial settle, a paywall that holds USDC before release) effects the transfer for a customer. Under the final §1.6045-1 regulations, custodial digital-asset brokers report dispositions on Form 1099-DA. If your agent infrastructure holds keys, assume the obligation attaches.
Agent-operated trading venue
Likely a broker
An agent that clears trades for other parties — a marketplace, an automated OTC desk, a bot that executes on behalf of multiple principals — stands in the broker position for those counterparties. The reporting attaches to the dispositions it facilitates, not to its own book.
Non-custodial router
Outside the current rule
An agent that constructs and forwards signed transactions without ever holding keys is a non-custodial actor. The 2024 DeFi / front-end broker rule that would have reached these was repealed under the Congressional Review Act in 2025. Non-custodial routers are not currently subject to 1099-DA broker reporting — but the principal still owes capital-gains tax on its own dispositions.
Principal trader (own book)
Not a broker — but reportable
An agent trading its operator's own capital is not a broker; it has no customer. It receives 1099-DAs from the brokers it trades through and must reconcile them to its own lot ledger. The obligation here is basis tracking and Schedule D reconciliation, not form issuance.

1099-DA rollout — what reports when

The reporting obligation phases in. Gross proceeds first, cost basis a year later. Form 1099-DA is federal — there is no state equivalent, though the figures flow to state returns through the principal's Schedule D.

Tax year 2025 (filed early 2026)
Gross proceeds
Custodial brokers report gross proceeds on digital-asset sales occurring on or after January 1, 2025. Basis is not yet required this year. First 1099-DA forms land in customer hands in early 2026.
Tax year 2026 (filed early 2027)
Gross proceeds + cost basis
Basis reporting begins for covered digital assets acquired on or after January 1, 2026. Brokers must track and report acquisition date and cost basis, not just proceeds. This is the milestone that forces wallet-by-wallet lot tracking.
Ongoing
Wallet-by-wallet basis
Rev. Proc. 2024-28 ended universal/average basis pooling for digital assets. Basis must be tracked per wallet from January 1, 2026. An agent running multiple wallets cannot net them — each wallet is its own lot ledger.

What goes on the form — and where the data comes from

Each 1099-DA field maps to something an agent stack has to capture at trade time. The right-hand column is what the engine records on each disposition.

1099-DA fieldWhat the agent captures
ProceedsUSD value of the disposition at settle. For a stablecoin-denominated sale, the proceeds equal the USDC amount; for a token-for-token swap, the fair-market USD value of what was received.
Cost basisAcquisition cost of the specific lot disposed, including fees added to basis. Requires per-lot tracking — the engine matches dispositions to lots via FIFO / LIFO / Specific-ID.
Acquired dateAcquisition date of the matched lot. Drives the holding-period determination (short vs long term) carried on the customer's Schedule D / Form 8949.
Disposed dateSettle timestamp of the disposition. For an x402 / on-chain settle this is the block timestamp of the transfer.
Asset / quantityDigital-asset identifier and units disposed. Sub-unit quantities supported — the engine does not round units before matching lots.
Wash-sale flagWhether a §1091 disallowance applies. The 61-day window (30 days each side) is evaluated at log time; disallowed losses are added to the replacement lot's basis.

Statutory citations and regulatory references

Source authorities behind the broker definition, the basis-tracking rules, and the holding-period determination. Each also appears in the policy_references / engine_advisories of the relevant /api/v1/trades response for audit traceability.

Broker Definition & Reporting
26 U.S.C. §6045 + T.D. 10000 (Treas. Reg. §1.6045-1)
Final digital-asset broker regulations. Defines the custodial digital-asset broker and the Form 1099-DA reporting obligation for dispositions on or after Jan 1, 2025.
Congressional Review Act resolution, 2025
Repealed the 2024 DeFi / front-end (non-custodial) broker rule (T.D. 10021). Non-custodial routers fall outside the current broker definition; only custodial brokers report.
Notice 2024-57
Identifies digital-asset transaction classes still under study (wrapping, staking, lending). Reporting posture for these is not yet final — document the position taken.
Basis Tracking
Rev. Proc. 2024-28
Ends universal/average-cost basis pooling for digital assets. Wallet-by-wallet allocation required from Jan 1, 2026 — the same per-wallet ledger the engine maintains.
IRC §1012 + §1.1012-1(j)
Specific-identification rules for digital assets. The engine supports FIFO, LIFO, and Specific-ID lot matching and pins the method on each disposition.
IRC §1091 (wash sales)
Loss-disallowance window. Engine evaluates both the backward and forward 30-day windows at log time and bumps replacement-lot basis under §1091(d).
Holding Period & Gain Character
IRC §1222 / §1223
Short-term vs long-term classification by holding period. The acquired/disposed dates on the 1099-DA drive the customer's Schedule D character lines.
IRC §6045A
Transfer-statement rules — when a covered asset moves between brokers, basis must travel with it. Relevant when an agent moves positions across custodial venues.
Form 8949 / Schedule D
Where the 1099-DA figures land on the principal's return. 1099-DA-ready output reconciles cleanly to these lines.

Emit 1099-DA-ready records at disposition

One API call per trade. The engine matches the disposition to lots using your chosen cost-basis method, returns realized_gains per matched lot with holding-period term, evaluates the §1091 wash-sale windows, and sets form_1099da_ready once the proceeds / basis / acquired-date / disposed-date fields are populated. Per-wallet lot ledgers keep basis reconciled to what the form will report.

Request
// Log a disposition — emits 1099-DA-ready fields
const response = await fetch("https://agenttax.io/api/v1/trades", {
  method: "POST",
  headers: {
    "Content-Type": "application/json",
    "X-API-Key": "atx_live_..."
  },
  body: JSON.stringify({
    role: "broker",                 // broker | principal
    asset_symbol: "ETH",
    trade_type: "sell",
    quantity: 2.5,
    price_per_unit: 3120.00,
    fee_amount: 4.10,               // added to basis on a buy
    trade_date: "2026-05-20T18:04:00Z",
    cost_basis_method: "fifo"
  })
});

const result = await response.json();
Response
{
  "success": true,
  "engine_version": "1.5",
  "realized_gains": [
    {
      "asset_symbol": "ETH",
      "proceeds": 7800.00,
      "cost_basis": 6420.00,
      "gain": 1380.00,
      "acquired_date": "2025-02-14",
      "disposed_date": "2026-05-20",
      "holding_period_days": 461,
      "term": "long_term"
    }
  ],
  "cost_basis_method": "fifo",
  "wash_sale_evaluated": true,
  "form_1099da_ready": true
}

Frequently asked questions

What is Form 1099-DA and when does it apply to an AI agent?
Form 1099-DA is the IRS information return for digital-asset broker transactions. A custodial broker files it for each disposition it effects for a customer. For an AI agent, the threshold question is whether the agent (or the facilitator it settles through) takes custody of keys. If it does, it is likely a broker and reports proceeds on dispositions occurring on or after January 1, 2025, adding cost basis for assets acquired on or after January 1, 2026. If the agent only trades its own operator's capital, it is not a broker — it receives 1099-DAs and reconciles them.
Is a non-custodial agent a digital-asset broker?
Not under the current rule. The 2024 regulation that would have pulled DeFi front-ends and non-custodial software into the broker definition (T.D. 10021) was repealed under the Congressional Review Act in 2025. An agent that constructs and forwards signed transactions without ever holding keys is outside the 1099-DA broker reporting obligation today. The principal whose capital is traded still owes capital-gains tax on its own dispositions — the reporting obligation and the tax obligation are separate questions.
When does cost-basis reporting actually start?
Two phases. Gross-proceeds reporting applies to digital-asset sales on or after January 1, 2025 (first forms filed in early 2026). Cost-basis reporting applies to covered assets acquired on or after January 1, 2026 (first basis-bearing forms filed in early 2027). The practical consequence: a broker has to be tracking acquisition date and basis per lot from the start of 2026, because that data has to appear on the form a year later. Retroactive reconstruction from a chain log alone is fragile — capture basis at acquisition.
Why does wallet-by-wallet basis matter for agents?
Rev. Proc. 2024-28 ended the universal/average-cost basis method for digital assets. From January 1, 2026 basis must be allocated per wallet. An agent operating a fleet of wallets cannot pool them into one average — each wallet is its own lot ledger, and a disposition from wallet A matches only against lots held in wallet A. This is the single most common place an agent stack's basis math diverges from what a 1099-DA will report. The engine maintains per-wallet, per-asset lot ledgers so the two reconcile.
How does AgentTax produce 1099-DA-ready records?
Log every disposition to POST /api/v1/trades with role, asset_symbol, trade_type, quantity, price_per_unit, fee_amount, and trade_date. The engine matches the disposition to lots using your chosen cost-basis method (FIFO default), returns realized_gains per matched lot with holding-period term, evaluates the §1091 wash-sale windows, and emits the proceeds / cost-basis / acquired-date / disposed-date fields a 1099-DA needs. Query GET /api/v1/trades for the running ledger. The form fields are populated at log time, not reconstructed at year-end.
What is the wash-sale rule's status for digital assets?
Section 1091 disallows a loss when a substantially identical asset is reacquired within 30 days before or after the sale. Its application to digital assets is debated — many assets are not 'securities' in the strict §1091 sense — but the conservative posture is to apply it, and several pending proposals would codify it for digital assets. The engine evaluates both the backward and forward 30-day windows at log time as an opt-in (gated by asset class), flags disallowed losses, and adds the disallowed amount to the replacement lot's basis per §1091(d). If your tax position is that §1091 does not apply, the flag is informational and you can disregard it.
How is this page different from the AI Agent Capital Gains guide?
The capital-gains guide answers 'how much tax does the disposition create' — short-term vs long-term character, cost-basis methods, and state rates across 51 jurisdictions. This page answers the prior question: 'who has to file a 1099-DA, and what goes on it.' That is a reporting / broker-determination question, not a gain-computation question. If you operate a custodial facilitator or a clearing venue, start here. If you trade your operator's own book and want to know the tax owed, start with the capital-gains guide. Both reconcile to the same lot ledger.

Related reading

Emit 1099-DA-ready records per disposition

Free tier covers 100 calls/month. Per-wallet lot tracking, FIFO/LIFO/Specific-ID, §1091 wash-sale evaluation, and 1099-DA-shaped output included from day one.