US Crypto Investors Concerned Over New IRS Tax Rule Triggering Penalties
Feb. 18 (CoinDesk) — A survey from crypto tax platform Awaken Tax finds over 50% of U.S. crypto investors are worried about facing IRS penalties this year. New regulations require brokers like Coinbase to report all digital asset transactions to the IRS via Form 1099-DA for 2025, aimed at combating tax evasion. For the first time, the IRS will access exchange internal data and cross-reference it with taxpayer filings. Awaken Tax founder Andrew Duca noted the rule treats crypto assets like stocks, but real-world use is far more complex: Users often transfer assets across multiple wallets, interact with DeFi, and brokers only report sale proceeds (not cost basis), leaving submitted forms incomplete. Taxpayers must supplement cost information using Form 8949. Currently, the crypto tax compliance rate is under 20%.
This new IRS rule is a wake-up call for crypto holders—over 50% worried about penalties makes sense with all the wallet hopping and DeFi mess. Cost basis reporting's gonna be a nightmare, but maybe it'll push better tools. Compliance under 20%? Time to get organized