IRS Tightens Crypto Tax Oversight as Many Investors Remain Unaware of New Rules

The Internal Revenue Service (IRS) is increasing its scrutiny of cryptocurrency tax compliance as the April 15 filing deadline approaches. According to NS3.AI, a recent report highlights that 61% of U.S. crypto investors are still unaware of the new reporting requirements set to take effect in 2025. These rules mandate brokers to report digital asset transaction income to the IRS using Form 1099-DA for the first time. Despite this, investors are still responsible for calculating their own cost basis. The report also reveals that 52% of investors are concerned about potential penalties due to filing errors.