Two-Thirds Crypto Investors Unaware of New IRS Rules

Nearly two-thirds of US crypto investors are heading into tax season unaware of new reporting rules that could cost them up to $100,000. Two-thirds crypto investors unaware rules is a pressing concern, with 61% of respondents saying they are unaware of specific new rules introduced by the Internal Revenue Service for reporting 2025 taxes.

Crypto Taxation Complexity

The findings come ahead of April 15, the IRS federal income tax filing deadline for 2025. Crypto taxation is a complex issue, with digital asset transactions requiring gross proceeds reporting. Lawrence Zlatkin, Coinbase’s vice-president of tax, said, “Users are struggling to navigate the complexities of crypto taxation, which is why it's so important for us to help bridge that knowledge gap.”

Crypto Tax Readiness

Cost Basis Issue

The cost basis issue is a significant challenge, with investors responsible for calculating and reconciling their own adjusted cost basis across platforms. Shehan Chandrasekera, head of tax strategy at CoinTracker, said, “If a crypto investor has transactions and transfers between multiple wallets and exchanges or is involved in decentralised finance, it will be almost impossible for them to reconcile crypto taxes manually.”

Crypto Investors' Knowledge Gap

A survey of 3,000 American crypto investors found that 74% percent of crypto users say they know their activity is taxable, with 56% rating their own knowledge of crypto taxes as excellent. However, the digital assets industry is an environment of high compliance intent but low functional understanding, highlighting a critical need for accessible, accurate, and integrated crypto tax solutions.

Key Takeaways

• 61% of crypto investors are unaware of new IRS tax rules.
• $100,000 is the potential cost of non-compliance.
• 74% of crypto users know their activity is taxable.
• Crypto tax solutions are necessary for compliance.

Frequently Asked Questions

What are the new IRS tax rules for crypto investors?

The new tax rules require investors to report gross proceeds from digital asset transactions, with a potential fine of up to $100,000 for non-compliance.

How can crypto investors reconcile their taxes manually?

Crypto investors can use crypto tax software to help reconcile their taxes, as manual calculation can be almost impossible, especially for those involved in decentralised finance.