When it comes to voluntarily paying taxes on time to the IRS, crypto investors may not have a great record. At least, not according to an IRS review from 2023, which showed “the potential for” a mere 25% compliance rate.
Translation: Only about a quarter of crypto investors are likely voluntarily complying with their tax obligations.
But that low rate is likely to rise, because 2025 is the first year that investors with accounts on centralized crypto exchanges are subject to third-party reporting.
If you sold or exchanged crypto this year and conducted those transactions on a centralized exchange such as Coinbase, the exchange is now required to report your sales and exchanges to the IRS on Form 1099-DA (Digital Assets).
Continue Reading on CNN
This preview shows approximately 15% of the article. Read the full story on the publisher's website to support quality journalism.