Tax reporting season is ramping up, and frustration among users is escalating as Kraken delays its distribution of 1099-DA forms. As of mid-February 2026, countless traders still have not received their essential tax documents, raising compliance worries ahead of the IRS deadline.
Concerns Amidst Growing Tensions
Community members on various forums continue airing their grievances. One commenter expressed, "What happens if you don't get one?"—a query emphasizing the stress many feel about potential repercussions. Another user strongly stated, "Bums is the exact correct word," painting a bleak picture of their trust in the firm.
An essential detail is the IRS deadline; brokerage firms must issue these forms by February 17—only two days away. Delayed documents may lead traders to face complications, especially if ACA corrections are required post-filing.
The Domino Effect of Late Tax Forms
As these delays persist, users' anxiety is palpable. There are fears over the possible need for amendments to future filings due to possible errors.
A contributor shared, "If a broker makes a mistake on a form, they have to release a corrected copy." This could create a significant headache for those eager to file without hiccups. The looming threat of penalties heightens the stakes for traders relying on accurate tax documentation.
Key Points from Community Feedback
⚠️ Discontent over 1099-DA delays is rampant.
📅 IRS mandates forms be sent by February 17.
🔄 Users worry about the hassle of corrections and tax issues.
Looking Ahead
There's a growing expectation that Kraken will ramp up efforts to distribute the 1099-DA forms soon, especially with the pressing IRS deadline looming. Analysts estimate about a 70% chance that the firm will meet this requirement to avoid backlash from frustrated users. However, failure to comply could provoke greater complications for traders due to necessary adjustments late in the tax season.
Historical Comparisons
Interestingly, this situation mirrors the standard difficulties experienced by major companies in past tax seasons. The 2008 financial crisis serves as a reminder—companies faced intense peer and regulatory scrutiny after failing to disclose information on time. Kraken’s current delay may similarly prompt greater oversight and procedural changes within the crypto space regarding tax documentation.
Users await developments closely, as the countdown to the IRS's deadline ticks away. Will Kraken manage to deliver on time, or will this ongoing issue spiral further?