Study Reveals Low Reporting of Crypto Gains Among U.S. Taxpayers

A recent study analyzing 221 million U.S. tax returns has uncovered that only 32% to 56% of U.S. cryptocurrency owners reported their gains to the Internal Revenue Service (IRS). According to NS3.AI, the research examined tax returns filed between 2013 and 2021, revealing that approximately 17.4 million individuals disclosed some form of cryptocurrency activity to the IRS. Starting with the 2025 tax year, new regulations under the Infrastructure Investment and Jobs Act will require exchanges to send Form 1099-DA directly to taxpayers and the IRS, aiming to improve compliance and reporting accuracy.