News
Public · Published
Study Finds Only 32% to 56% of U.S. Crypto Taxpayers Report Transactions to the IRS
A study in the Review of Accounting Studies found that only 32% to 56% of U.S. taxpayers who hold virtual currencies report their transactions to the IRS, and the IRS will require intermediaries to file Form 1099‑DA starting in 2025.
Published:
Updated:
What happened
A study in the Review of Accounting Studies found that only 32% to 56% of U.S. taxpayers who hold virtual currencies report their transactions to the IRS, and the IRS will require intermediaries to file Form 1099‑DA starting in 2025.
Confirmed
Global impact / market context
Low reporting rates mean the government may be missing significant taxable crypto activity, which could lead to stricter enforcement and higher compliance costs for individuals and firms that handle digital assets.
Analyst inference
The upcoming Form 1099‑DA requirement will increase data flow to the IRS, potentially prompting more audits and influencing how crypto exchanges and custodians design their reporting systems and pricing models.
Analyst inference
What to watch
- Implementation timeline of Form 1099‑DA by exchanges and custodians, which will affect the volume of data the IRS receives. Proposed
- IRS enforcement actions or guidance on crypto tax compliance, which could change filing behavior and penalties. Proposed
- Changes in crypto transaction volumes or user behavior as taxpayers adjust to new reporting obligations. Proposed