River 1099-DA Tax Form: How It Works and What To Do Next

River issues Form 1099-DA for cryptocurrency sales and exchanges, Form 1099-MISC for rewards over $600, and Form 1099-NEC for mining income - plus River allows you to manually add cost basis for transferred crypto and choose your preferred accounting method (FIFO, HIFO, LIFO) in settings.

What Is River Tax Form 1099-DA?

Form 1099-DA is the IRS's new standard for reporting cryptocurrency dispositions starting with the 2025 tax year.

Beginning with 2025 transactions, crypto platforms like River must report sales and exchanges to the IRS using Form 1099-DA. River provides Form 1099-DA to help you report your digital asset transactions accurately and comply with new federal regulations.

Multiple Tax Forms from River

Depending on your activity, you may receive different forms from River.

When you'll receive them: 1099 forms are typically issued by late January or early February each year.

Important: Even if you don't receive forms due to not meeting thresholds, you're still required to report all taxable crypto activity.

How to Access Your River Tax Documents

River makes tax forms available through your account once the forms are ready.

Expected availability: Late January or early February following the tax year.

Access steps:

1. Log into your River account
2. Navigate to your tax documents section
3. Download Form 1099-DA, 1099-MISC, or 1099-NEC as applicable

Additional resources: River provides account statements showing:

• Summary of Gains and Losses table (page 2)
• Monthly statement PDFs for each month a sale occurred
• December year-end statement with year-to-date totals

What Triggers Each Form Type

Different cryptocurrency activities generate different tax reporting.

River 1099-DA triggers:

• Crypto to fiat: Selling cryptocurrency for U.S. dollars
• Crypto to crypto: Swapping one token for another
• Spending crypto: Using cryptocurrency to purchase goods or services
• Any taxable disposal through River as a broker

1099-MISC triggers:

• River referral program rewards totaling $600 or more
• Interest earned on cash held at River totaling $600 or more

1099-NEC triggers:

• Cryptocurrency mining income through River totaling $600 or more

No 1099-DA generated:

• Simply buying crypto with U.S. dollars (not a taxable event)
• Transferring crypto between your own wallets
• Holding crypto without selling or exchanging

The Critical 2025 vs. 2026 Reporting Difference

Understanding River's phased reporting approach is essential for accurate tax planning.

For 2025 sales (forms issued early 2026):

• River reports gross proceeds only - not cost basis to the IRS
• However, cost basis IS visible to you on your 1099-DA
• You must still calculate and report your own cost basis to the IRS
• This applies to ALL crypto sold in 2025, regardless of when purchased

For 2026 and later:

• River will report both gross proceeds AND cost basis to the IRS
• This applies only to "covered securities" - crypto acquired through River on/after January 1, 2026 and held at River until sale
• Transferred crypto remains your responsibility to track

River's unique advantage: Unlike many exchanges, River may voluntarily report cost basis information on your 1099-DA even for 2025, but this is not required to be sent to the IRS. The IRS only receives gross proceeds for 2025.

River's Cost Basis Entry Feature

River offers a critical feature that many other exchanges don't provide.

The problem: When you transfer cryptocurrency to River from another exchange or wallet, River doesn't automatically know what you originally paid for it.

River's solution: You can manually enter the cost basis for cryptocurrency you transfer to River's platform.

Why this matters:

• Ensures accurate tax reporting on your 1099-DA
• Prevents the exchange from showing zero cost basis (which would inflate your taxable gains)
• Gives you complete, accurate tax forms even for transferred crypto

How to use it: Access your River account settings to add cost basis information for deposited cryptocurrency, including original purchase date and price.

Choosing Your Accounting Method on River

River lets you select your preferred cost basis accounting method directly in your account settings.

Available methods:

• FIFO (First In, First Out): Sells your oldest crypto first
• HIFO (Highest In, First Out): Sells your highest-cost crypto first (often minimizes gains)
• LIFO (Last In, First Out): Sells your most recently purchased crypto first

How to choose: Log into your River account and select your preferred accounting method in the settings before the tax year begins.

Default method: If you don't specify, River will use FIFO by default for reporting purposes.

Important: Your selected method applies on a wallet-by-wallet basis. Each exchange you use can have a different accounting method.

Understanding Wallet-by-Wallet Accounting (2025 Rule Change)

Starting January 1, 2025, the IRS implemented new wallet-by-wallet accounting rules.

Old approach (pre-2025): Some taxpayers treated all cryptocurrency across all platforms as one combined pool for cost basis purposes.

New approach (2025+): Basis tracking is done separately for each wallet or account. You cannot treat crypto held across multiple exchanges as one inventory.

What this means for River users:

• Track your River cryptocurrency separately from Coinbase, Kraken, or other platforms
• Each platform's holdings are a separate "bucket" for tax purposes
• When you sell crypto on River, you're selling from your River inventory only

IRS safe harbor: The IRS issued a transition procedure allowing taxpayers to reasonably allocate their existing basis to different wallets/accounts as of January 1, 2025.

Common River Tax Scenarios

Understanding these situations helps you prepare correctly.

Crypto purchased and sold on River in 2025 - You bought 0.5 BTC for $45,000 on River and sold it for $50,000 later in 2025. River reports $50,000 in gross proceeds to the IRS. Your 1099-DA shows both proceeds and cost basis, but only proceeds are sent to the IRS. You calculate and report the $5,000 capital gain yourself.

Crypto transferred to River, then sold - You transferred Ethereum from Coinbase to River, then sold it. If you entered the original cost basis in River's system, it appears on your 1099-DA. If you didn't, you need your Coinbase records to prove your basis.

Crypto purchased on River in 2026, sold in 2027 - You buy cryptocurrency on River on March 1, 2026, hold it on the platform, and sell it in August 2027. River will report BOTH proceeds and cost basis to the IRS on your 2028 1099-DA because this qualifies as a "covered security."

Multiple accounting methods across exchanges - You use HIFO on River and FIFO on Coinbase. This is allowed - each exchange operates independently for tax purposes under wallet-by-wallet accounting.

Understanding Your River Tax Form 1099-DA

River's 1099-DA follows the standard IRS format for digital asset reporting.

The form includes:

For 2025 transactions:

• Gross proceeds (sent to IRS and shown to you)
• Cost basis (shown to you, but NOT required to be sent to IRS)
• Transaction details (date, specific asset, quantity)
• Digital asset type (e.g., BTC, ETH, SOL)
• Whether gain/loss is short-term or long-term

For 2026+ transactions (covered securities only):

• All of the above
• Cost basis IS reported to the IRS
• Calculated gain or loss reported to the IRS

River's advantage: River may voluntarily report cost basis even for 2025 transactions, making your 1099-DA more complete than other exchanges.

Tax Rates for River Crypto Transactions

How you're taxed depends on holding period and transaction type.

Holding crypto for more than one year can save you up to 17 percentage points in taxes.

What's Taxable vs. Non-Taxable on River

Not every crypto activity triggers a tax event.

Taxable events:

• Selling crypto for U.S. dollars or other fiat
• Swapping one crypto for another (both sides taxable)
• Using crypto to purchase goods or services
• Receiving referral rewards or interest
• Earning crypto through mining

Non-taxable events:

• Buying crypto with U.S. dollars
• Transferring crypto from River to your own external wallet
• Transferring crypto from an external wallet into River
• Simply holding crypto (no transaction occurred)
• Receiving crypto as a gift (receiver doesn't pay tax; giver may have reporting requirements)

Required IRS Forms for Filing

Your River 1099-DA form is the starting point - you still need to file specific IRS forms.

Even with Form 1099-DA, 1099-MISC, or 1099-NEC from River, you must complete:

Form 8949 - Lists each crypto sale with proceeds, cost basis (which you calculate for 2025), and gain/loss.

Schedule D - Summarizes your capital gains and losses from Form 8949.

Schedule 1 - Reports Form 1099-MISC income (referral rewards and interest on cash).

Schedule C - Reports Form 1099-NEC income (mining operations treated as self-employment).

Multiple platforms? If you used River plus other exchanges, you'll receive multiple forms and must report ALL transactions across all platforms.

Calculating Cost Basis for 2025

For 2025, you must verify and report cost basis even though River may show it on your form.

For crypto purchased on River in 2025:

1. Review your River 1099-DA for cost basis information
2. Cross-check with your River account statements
3. Verify the accounting method used matches your selection
4. Report the cost basis on Form 8949

For crypto transferred to River:

1. Check if you entered cost basis in River's system
2. If not entered, locate records from the original exchange or wallet
3. Find the date you first acquired the crypto
4. Determine what you paid, including all fees
5. Maintain documentation proving your cost basis

Cost basis = purchase price + all acquisition fees

Without accurate cost basis, the IRS may assume zero basis - meaning you'd owe tax on your entire proceeds.

Why River's 1099-DA May Be More Accurate

River addresses a common problem with crypto tax reporting.

The industry-wide issue: Most exchanges cannot provide accurate cost basis for transferred cryptocurrency. They either assign $0 basis (inflating your gains) or omit the crypto entirely (creating incomplete forms).

River's unique approach: River allows you to manually enter the cost basis for cryptocurrency you transfer to the platform, ensuring accurate reporting.

What to do:

• When transferring crypto to River, immediately enter the original cost basis
• Include the original purchase date and price
• Add any acquisition fees to your basis
• This information will appear on your 1099-DA

This feature makes River's 1099-DA forms more reliable than many other exchanges.

Using Crypto Tax Software

Professional software handles River's multi-platform complexity.

Awaken Tax integrates with River and can:

• Import your crypto transaction history automatically
• Track cost basis for transferred crypto from other platforms
• Reconcile your 1099-DA with your actual transactions
• Generate Form 8949 and Schedule D automatically
• Handle crypto-to-crypto swaps correctly
• Ensure accurate reporting across all your crypto activity

This is especially valuable if you use River plus other exchanges like Coinbase, Kraken, or Binance.

What Happens If You Don't Report

The IRS receives copies of your Form 1099-DA from River.

Immediate risks:

• CP2000 notice for unreported proceeds or discrepancies
• 20% accuracy penalties on underpayment
• Interest charges from the filing deadline

Serious consequences:

• Increased audit likelihood
• Penalties up to 25% of unpaid tax
• Criminal prosecution for intentional evasion

The IRS's automated matching systems flag any mismatch between what River reports and what appears on your return.

Common River Crypto Tax Mistakes

Avoid these errors to stay compliant.

Forgetting crypto-to-crypto swaps are taxable - Any exchange of one cryptocurrency for another creates a taxable event. Both the disposal and the acquisition have tax implications.

Not entering transferred crypto basis - If you moved crypto to River from another exchange, you must either enter the basis in River's system or maintain your own records. River cannot magically know what you originally paid.

Assuming River's cost basis goes to the IRS for 2025 - Even though you see cost basis on your 2025 1099-DA, River is not required to send it to the IRS. You must report it yourself.

Missing rewards/referrals below $600 - Even if you don't receive a 1099-MISC (under $600), you must report all referral rewards and interest as ordinary income.

Not selecting an accounting method - If you don't choose FIFO, HIFO, or LIFO in River's settings, River defaults to FIFO. This might not be optimal for your tax situation.

Ignoring wallet-by-wallet accounting - Since 2025, you cannot combine River holdings with other exchanges for basis purposes. Each platform is separate.

Tax Planning with River Crypto

Simple strategies can reduce your crypto tax bill legally.

Hold for long-term rates - Wait more than a year before selling crypto to access 0%, 15%, or 20% rates instead of up to 37%.

Choose HIFO to minimize gains - If you've purchased crypto at various prices, HIFO (Highest In, First Out) often results in lower taxable gains. Set this in River's account settings.

Enter cost basis immediately upon transfer - When moving crypto to River, enter the original cost basis right away. This prevents errors and ensures accurate 1099-DA forms.

Plan your 2026 purchases - Crypto purchased on River starting January 1, 2026 and held until sale will have automatic cost basis reporting to the IRS. This simplifies taxes for buy-and-hold strategies.

Harvest tax losses - Crypto losses offset crypto gains. Sell losing positions before year-end to reduce your tax bill. (Crypto currently isn't subject to wash sale rules, but this could change.)

Track basis for transferred crypto - Maintain detailed records of all cryptocurrency you transfer into River, including original purchase dates, prices, and fees.

Getting Professional Help

Know when DIY works and when to hire expertise.

DIY makes sense if:

• All crypto was purchased and sold on River only
• No external wallet transfers (or you entered all basis data)
• Simple buy-and-hold strategy
• Fewer than 50 transactions total
• Comfortable with tax software

Hire a professional if:

• Transferred crypto from multiple sources without complete records
• Missing cost basis documentation
• High-volume crypto-to-crypto trading
• Received an IRS notice or CP2000 letter
• Complex situation with multiple exchanges
• Mining operations with business expenses
• Uncertain about covered vs. noncovered securities rules

Look for tax professionals with cryptocurrency specialization and Form 1099-DA experience.

River's Unique Tax Features

River offers several advantages for tax reporting.

Manual cost basis entry - Unlike most exchanges, River lets you add cost basis for transferred cryptocurrency, ensuring accurate 1099-DA forms.

Accounting method selection - Choose FIFO, HIFO, or LIFO in your account settings to optimize your tax strategy.

Comprehensive account statements - River provides detailed monthly statements and year-end summaries showing your complete transaction history.

Voluntary cost basis reporting - River may include cost basis on your 2025 1099-DA even though it's not required to send it to the IRS—giving you complete information.

Mining support - River issues Form 1099-NEC for mining income, properly categorizing it as self-employment income.

NMLS #1906809 - River operates as a registered money services business, ensuring regulatory compliance.

River Tax Form 1099-DA Key Takeaways

Remember these essential points about River crypto taxes.

Proceeds-only to IRS for 2025 - River reports only gross proceeds to the IRS for 2025 transactions. Cost basis may appear on your form but you must report it to the IRS yourself.

Cost basis starts 2026 - Beginning with crypto purchased January 1, 2026 onward and held on River until sale, cost basis will be reported to the IRS. Transferred crypto still requires your documentation.

Enter transferred basis - Use River's unique feature to manually add cost basis for cryptocurrency you transfer to the platform. This creates accurate tax forms.

Choose your method - Select FIFO, HIFO, or LIFO in River's settings. HIFO often minimizes taxable gains.

Wallet-by-wallet accounting - Since 2025, treat River holdings separately from other exchanges. You cannot combine inventories across platforms.

River Tax Form 1099-DA Frequently Asked Questions

Does River send my 1099-DA to the IRS automatically? Yes, River files Form 1099-DA with the IRS for your crypto sales and exchanges, so they already have your gross proceeds information before you file your return. For 2025, cost basis is not sent to the IRS even though it may appear on your form.

Can I add cost basis for crypto I transferred to River from another exchange? Yes, River offers a unique feature allowing you to manually enter cost basis information for cryptocurrency you transfer to the platform. This ensures your 1099-DA accurately reflects your true tax situation.

What accounting method does River use if I don't select one? River defaults to FIFO (First In, First Out) if you don't specify a preferred method. You can change this in your account settings to HIFO or LIFO depending on your tax strategy.

Are crypto-to-crypto swaps on River taxable? Yes, swapping Bitcoin for Ethereum (or any crypto-for-crypto exchange) creates a taxable event. -you're disposing of one asset and acquiring another. Both transactions must be reported.

Do I need to report crypto if I only bought and held it on River? No, buying and holding isn't taxable. However, you must report all crypto sales, exchanges, swaps, rewards, referrals, and mining income even if you don't receive tax forms due to falling below thresholds.