US Crypto Tax Reporting Rate Surges to 56% Max Amid New IRS Rules

Study reveals only 32-56% of US crypto holders report transactions. New 1099-DA rules starting 2025 will expose discrepancies between business reports and taxpayer declarations, tightening enforcement.

Woofun AI data shows that a study in the Review of Accounting Studies indicates only 32% to 56% of US taxpayers holding virtual currencies file transactions with the federal government. The IRS mandates intermediaries submit Form 1099-DA starting in 2025, enabling authorities to identify discrepancies between business reports and taxpayer declarations. The form requires reporting total earnings in its first year, with cost basis reporting obligations introduced in 2026.