Exchanges reporting crypto gains to IRS becomes tax nightmare
The IRS can now see your crypto gains, but has no idea about the cost-basis. That’s proving to be a big headache for some cryptocurrency investors.
The IRS can now see your crypto gains, but has no idea about the cost-basis. That’s proving to be a big headache for some cryptocurrency investors.
It’s that time of year again in the United States. The days start to draw in, the leaves start to fall, and the tax man comes knocking for your 2025 return.
This year, thanks to the Inland Revenue Service’s new rules, the agency now knows more about Americans’ crypto trades than ever before, with brokers required to report gross proceeds from certain digital asset sales.
She also gives an example involving stablecoins, saying one of her firm’s clients had more than $300,000 in stablecoin trades on an exchange in 2025, but the exchange’s 1099-DA showed less than $100,000 in total stablecoin proceeds.