Some 61% of U.S. crypto investors are unaware of the IRS’s new reporting rules for the 2025 tax year ahead of the April 15 filing deadline, according to a March report by Coinbase (NASDAQ:COIN) and CoinTracker shared with DL News.
The IRS Crackdown
The Internal Revenue Service is stepping up its crackdown on crypto tax evasion as the April 15 filing deadline approaches.
“This year, we are seeing the IRS clampdown on crypto tax evasion more than ever before,” Andrew Duca, founder of tax platform Awaken Tax, told DL News.
“The IRS’s Criminal Investigation division is going after crypto cases more and more,” he added.
The Coinbase and CoinTracker report described an “environment of high compliance intent but low functional understanding.”
Meanwhile, Duca reports that 52% of U.S. crypto investors worry they will file their crypto taxes incorrectly this year and face an IRS penalty.
“There have been so many changes this year, and it’s clear investors are struggling to get their heads around it,” he said.
The New Form 1099-DA
The biggest shift for 2025 is Form 1099-DA. For the first time, brokers must report gross proceeds from digital asset transactions to taxpayers and the IRS.
That brings crypto reporting closer to traditional brokerage accounts.
However, there is a critical catch: brokers are not required to report cost basis to the IRS for 2025.
That means crypto investors remain fully responsible for calculating and reconciling their adjusted cost basis across platforms.
“Make sure you don’t just accept what those exchanges send to you, or you could dramatically overpay,” Duca said.
The Criminal Risk
Criminal tax fraud can lead to a fine of up to $100,000 and five years in prison, according to Cornell Law School.
That represents a worst-case scenario, but you face far lighter consequences when you come forward voluntarily than when authorities catch you.
“The consequences of voluntarily coming forward rather than being caught out are far less,” Duca said.
Duca urged crypto investors to gather records from every exchange, connect every wallet, and report accurately.
The agency’s Criminal Investigation division has turned what was once a murky grey zone into a brightly lit compliance regime.
Image: Shutterstock
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