A new survey reveals widespread confusion about cryptocurrency taxation, despite broad awareness of tax obligations. Only 49% of respondents correctly identified that crypto becomes taxable when sold, not transferred. The findings highlight challenges from fragmented asset holdings and new IRS reporting rules.
Most cryptocurrency users remain unclear on fundamental tax rules. A recent survey found fewer than half correctly identify when transactions become taxable events.
Only 49% of respondents knew crypto becomes taxable when sold. Nearly a quarter mistakenly believe simple transfers can trigger tax events, according to a 2026 report published by Coinbase and CoinTracker. The findings are based on a survey of 3,000 U.S. crypto users conducted ahead of the 2025 tax season.
Investors show a clear willingness to comply with tax rules. Seventy-four percent are aware crypto is taxable, while 65% have reported activity in the past.
New IRS rules are complicating tax reporting for investors. From the 2025 tax year, brokers will issue Form 1099-DA but will not include cost basis information.
Crypto investors often hold assets across multiple platforms, averaging 2.5 wallets or exchanges. This fragmentation makes tracking cost basis, needed to calculate gains, significantly harder.
Most users rely on traditional tools for tax preparation. Around 78% use general tax software and 52% turn to accountants, while only 8% use crypto-specific services.
Interest in artificial intelligence for tax calculation is growing. Nearly half of respondents said they would use AI to calculate taxes, with 30% open to relying on it for the entire process.
The IRS recently proposed rules mandating electronic delivery of tax forms. Brokers could end relationships with users who refuse digital delivery under this proposal.
Exchanges must continue issuing Form 1099-DA to report transaction proceeds. Cost basis tracking, however, will remain the responsibility of individual investors.
