IRS Tax Rules on Crypto Remain a Mystery to Many US Investors

A recent survey by Coinbase and CoinTracker found that nearly two-thirds of US crypto investors are unaware of new IRS tax rules, which could cost them up to $100,000.

The survey, which polled 3,000 American crypto investors, found that 61% of respondents said they were unaware of the specific new rules introduced by the Internal Revenue Service for reporting 2025 taxes. These rules require investors to report gross proceeds from digital assets transactions, but the responsibility for calculating adjusted cost basis lies with the users.

The lack of understanding among crypto investors is a concern as the IRS federal income tax filing deadline for 2025 approaches on April 15. Criminal tax fraud can lead to a fine of up to $100,000 and five years in prison, although this would be the worst-case scenario for individuals convicted of serious and intentional wrongdoing.

Coinbase's vice-president of tax, Lawrence Zlatkin, stated that 'users are struggling to navigate the complexities of crypto taxation,' which is why it's essential for them to help bridge the knowledge gap. CoinTracker's head of tax strategy, Shehan Chandrasekera, added that calculating cost basis is uniquely hard to solve and would be almost impossible for users to reconcile manually.