A joint survey conducted by cryptocurrency exchange Coinbase Global and tax software company CoinTracker revealed that 61% of US cryptocurrency users are unaware of new tax reporting rules for the 2025 tax year. The findings were published ahead of the April 15 tax filing deadline.
The “2026 Crypto Tax Readiness Report” polled 3,000 US cryptocurrency users between September 9 and October 3. Despite the lack of awareness regarding new regulations, the report noted that 74% of respondents know cryptocurrency is taxable, and 65% stated they have reported their activity in the past, refuting misconceptions of widespread tax avoidance.
Confusion Over Taxable Events
The survey highlighted significant confusion regarding basic tax rules among investors:
- Only 49% of respondents correctly understand that cryptocurrency becomes taxable when it is sold.
- As many as 41% of users incorrectly believe that simple transfers trigger taxable events.
The Form 1099-DA Challenge
For the 2025 reporting year, the Internal Revenue Service (IRS) introduced Form 1099-DA, which requires users to report gross proceeds from cryptocurrency transactions. However, brokers issuing the form will not include the cost basis, leaving users responsible for reconciling transactions themselves across platforms that do not share data.
This calculation is complicated by the highly fragmented nature of cryptocurrency holdings:
- The average investor holds assets across 2.5 wallets or exchanges.
- Approximately 83% of users utilize self-custody solutions.
Coinbase criticized the new IRS requirements last month, arguing that reconciling cost data across multiple platforms is overly complex. The exchange also decried the rules mandating the inclusion of transaction fees in cost basis calculations and the reporting of stablecoin transactions, calling them overly burdensome while generating negligible revenue.
Furthermore, the IRS recently proposed new rules that would require cryptocurrency exchanges to deliver tax forms electronically, eliminating paper copies. Under this proposal, brokers could terminate relationships with users who refuse digital delivery, and users would no longer be able to withdraw consent once given.
Tax Preparation Tools and AI
Despite the complexities specific to digital asset taxation, most users continue to rely on traditional preparation methods.
- Approximately 78% of users utilize general accounting software.
- About 52% of users hire accountants to prepare their taxes.
- Only 8% of respondents use cryptocurrency-specific tax solutions.
However, artificial intelligence (AI) is emerging as a popular tool for tax preparation. The survey found that 47% of users are computing tax calculations with AI, while 43% use the technology to generate personalized strategy recommendations. Nearly 30% of respondents expressed an openness to relying on AI for the entire tax process.
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This article is published on BitPinas: Majority of US Crypto Users Unaware of New Tax Rules, Survey Finds
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