Overview
Form 1099-R, "Digital Asset Proceeds From Broker Transactions," is an IRS information return introduced to report sales and exchanges of digital assets such as cryptocurrencies, stablecoins, tokenized securities, and certain NFTs. Brokers file the form with the IRS and furnish a copy to the taxpayer (the person whose transactions are being reported).
For tax year 2026, gross proceeds reporting on Form 1099-R remains mandatory for all digital assets.
Basis reporting becomes mandatory for covered securities and stays voluntary for noncovered securities.
1099-R automation with TaxBandits API
The TaxBandits API enables you to automate 1099-R filing directly from your existing systems. Depending on how your platform manages recipient data, you can choose the approach that fits your workflow.
Automate end-to-end 1099-R cycle
Collect W-9/W-8 forms from recipients, validate their TINs against the IRS database, and file 1099-R forms at year-end.
Best for: Crypto exchanges and trading platforms, hosted (custodial) wallet providers, digital asset kiosks (crypto ATMs), and payment processors (PDAPs) — i.e., the entities the IRS actually classifies as "brokers" under the final regulations.
Create and file 1099-R directly
If you already have recipient data and annual payment totals in your system, use the API endpoints to create and transmit 1099-R forms directly.
Best for: Real estate closing/title companies (reporting fair market value of digital assets in transactions closing on or after January 1, 2026), crypto accounting/ERP and tax-prep platforms, and NFT marketplaces or minting platforms that already separate first-sale from resale proceeds.
Supported tax years
TaxBandits API supports e-filing of Form 1099-R for the following tax years:
| Tax Year | API Version |
|---|---|
| 2026 | v2.0.0 |
| 2025 | v2.0.0, v1.7.3 |
| 2024 | v1.7.3 |
Services available
The TaxBandits API supports the following services for Form 1099-R:
- Federal Filing - File 1099-R returns with the IRS.
- Postal Mailing - TaxBandits prints and mails the recipient copy on your behalf.
- Online Access - Share a digital copy of the 1099-R with recipients through a secure, branded online portal. Recipients are notified via email and can view, download, and consent to paperless delivery.
- Corrections - File corrections for 1099-R forms that are already accepted by the IRS. (even if the original returns were filed elsewhere).
1099-R endpoints
All endpoints require a Bearer token obtained through the OAuth 2.0 authentication flow. Include this token in the Authorization header of every request. Learn more about OAuth 2.0.
- Create - Create one or more 1099-R records in a single submission.
- Update - Modify an existing 1099-R submission before it has been transmitted to the IRS.
- Get - Retrieve payer, recipient, and form data for a specific 1099-R submission by
SubmissionId. - ValidateForm - Validate 1099-R field-level specifications against IRS business rules before creating the form.
1099 utility endpoints
The following endpoints are shared across all 1099 form types.
- List - List all 1099-R records for a submission or payer.
- Status - Retrieve the status of the Forms 1099-R submitted to the IRS.
- Transmit - Transmit the created return to the IRS.
- StatusLog - Retrieves the status change of the transmitted return.
- RequestDraftPdfUrl - Returns a draft PDF URL for review. These forms are not for filing and will have a watermark "For Review only" on them.
- RequestPdfURLs - Retrieve final PDF URLs for one or more recipients after transmission.
- Delete - Delete the returns created before transmitting.
As an alternative to the Status endpoint, you can configure webhooks to receive automated status updates. Learn more