A new industry report indicates most cryptocurrency users intend to comply with tax requirements, but widespread confusion persists. The study found 74% of users know crypto is taxable and 65% have reported activity, yet only 49% correctly identify taxable events. Challenges are compounded by complex cost-basis tracking across multiple platforms and new IRS reporting rules.
Most cryptocurrency users intend to comply with tax requirements, but confusion around reporting rules and transaction tracking continues to create friction. A joint study found 74% of users are aware that crypto is taxable, and 65% have reported crypto activity in the past.
Understanding remains uneven, however, as only 49% correctly identify when a taxable event occurs. The findings suggest compliance is not the primary issue, with users instead facing a complex reporting environment.
The growing complexity comes as U.S. regulators move to standardize reporting through Form 1099-DA. These rules will require digital asset brokers to provide detailed transaction statements, with updated guidance allowing electronic delivery starting in 2027.
A key unresolved challenge is cost basis calculation, necessary to determine gains or losses. The report shows users average 2.5 platforms and 83% utilize self-custody wallets, making tracking the original purchase price difficult.
While Form 1099-DA will report gross proceeds, users remain responsible for determining adjusted cost basis. Only 35% of respondents said they had adjusted cost basis in the past, highlighting a gap between requirements and user capability.
As complexity grows, users are turning to automation for support. Nearly half of respondents [47%] said they would use AI tools to calculate taxable income and capital gains, while 30% indicated they would rely on AI to handle the entire tax process.
Despite this shift, traditional methods still dominate. The report noted that 78% use general tax software and 52% rely on accountants for managing their crypto tax obligations.
