Strike issues a Form 1099-DA, Digital Asset Proceeds From Broker Transactions, only for a year in which you sold or otherwise disposed of bitcoin. If you had any taxable transactions this year, you’ll be notified to access the form in the app by mid-February next year. You can view and download transaction history and account statements anytime.
Even if you close your account, you’ll still receive an email as long as you made a taxable transaction in the preceding year. If you don’t receive the form, contact support.
Every form Strike issues also goes to the IRS, as required by law, and the IRS matches forms against returns. You stay in control of the figures on your own return, and you remain responsible for them.
Taxable transactions
The IRS treats bitcoin as property, so exchanging it for something else realizes a capital gain or loss that belongs on your tax return. You may be taxed when:
- Selling bitcoin for dollars
- Sending bitcoin to someone else as a payment, including to other Strike accounts or external addresses
- Spending bitcoin on goods or services, including in-kind loan payments, involuntary collateral liquidations, bill payments, or gift card purchases
The IRS treats sending and spending bitcoin essentially the same as selling it: the gain or loss is the bitcoin’s value when it leaves your account minus the cost basis of when you acquired it.
Which tax year a transaction falls in
IRS regulations require the use of a consistent time zone to ensure reporting periods are applied uniformly. Accordingly, our system records trade activity in Coordinated Universal Time (UTC). The “Date sold or disposed” on Form 1099-DA is the UTC date, and that date decides which year’s form a transaction appears on. The UTC year ends at 7:00 p.m. ET on December 31, so a transaction meant to lock in a gain or loss for that year needs to go through before then. A sale placed at 6:45 p.m. ET on December 31, 2025, belongs on the 2025 form, while one placed at 11:45 p.m. ET was dated January 1, 2026, and belongs on the 2026 form.
The Strike app shows transaction times in your local time zone, so a transaction that reads December 31 in the app can be dated January 1 on the form. Account statements use UTC, so they’re the easiest way to match a transaction to the form. The 1099-DA we provide reflects this standardized UTC-based reporting and cannot be modified.
Non-taxable transactions
Tax is triggered by the disposal of bitcoin, not by ownership. Generally, transactions that don’t involve disposals don’t create taxable events, such as:
- Buying bitcoin with dollars and holding it, including through automatic paycheck conversions (though the income itself is subject to income tax)
- Sending bitcoin between wallets or accounts that are all your own, including Strike’s free on-chain withdrawals
- Receiving bitcoin as a gift creates no income until you later dispose of it, as long as you stay below the IRS exclusion limit
Examples are for informational purposes only. Strike doesn’t provide tax advice. Consult a qualified professional about your individual situation.
Form 1099-K for businesses
Business accounts receive the same 1099-DA for bitcoin dispositions.
A business accepting payments may additionally receive a Form 1099-K, which reports the gross volume of payments the business received through Strike. A 1099-K’s gross amount is not itself taxable income. You calculate your actual taxable income when you file your return, after subtracting deductions, cost basis, and any non-taxable payments.
The federal threshold is more than $20,000 in gross payments and more than 200 transactions in the year. Several states set lower thresholds, so a business can receive a form below the federal bar:
| State | Tax year 2025 threshold |
|---|---|
| Arkansas | $2,500 |
| Illinois | $1,000 and 4 or more transactions |
| New Jersey | $1,000 |
| DC, Maryland, Massachusetts, Montana, Vermont, Virginia | $600 |
If you receive a 1099-K you believe your business is not eligible for, contact support to request a revision.