A novel study has found that most cryptocurrency users are unsure about basic tax rules, and less than half correctly identify when transactions are taxable.
Only 49% of respondents correctly understand that cryptocurrency is taxable at the time of sale, while almost a quarter believe that elementary transfers can trigger tax events. According to to the Crypto Tax Readiness Report 2026 published by Coinbase and CoinTracker.
The findings come from a survey of 3,000 U.S. cryptocurrency users conducted between September 9 and October 3, ahead of the 2025 tax reporting season.
The survey noted that cryptocurrency investors show a clear willingness to comply with tax regulations, with 74% saying they are aware that cryptocurrencies are subject to tax and 65% saying they have reported activity in the past. “This debunks the misconception that cryptocurrency tax avoidance is widespread,” the study said.
Related: Brazil’s Finance Minister Postpones Crypto Tax Policy Due to Elections: Report
New IRS regulations complicate tax reporting
The survey also highlighted several key challenges hindering cryptocurrency tax reporting. First, cryptocurrency investors often hold assets on multiple platforms, with an average of 2.5 wallets or exchanges, and 83% apply self-custody. This fragmentation makes it challenging to track the cost basis that is needed to calculate profits and losses.
New reporting rules add to the challenge. Beginning in tax year 2025, brokers will issue Form 1099-DA but will not include cost basis, leaving users to reconcile trades on their own on platforms that do not share data.
Despite these challenges, most users rely on time-honored tools. About 78% apply general tax software, while 52% turn to accountants, and only 8% apply cryptocurrency tax services. At the same time, interest in artificial intelligence is growing – almost half of respondents say they would apply it to calculate taxes, and 30% are willing to rely on it throughout the process.
Related: US lawmakers publish cryptocurrency tax proposal without Bitcoin tax exemption
The IRS introduces the obligation to apply digital tax forms for cryptocurrencies
Earlier this month, the IRS proposed novel rules that would require cryptocurrency exchanges to provide tax forms electronically, eliminating the option of paper copies. Under the proposal, brokers could terminate relationships with users who refuse to provide digital content, and users would no longer be able to withdraw their consent.
Exchanges must continue to issue Form 1099-DA to report trading proceeds, although tracking cost basis will remain the responsibility of investors.
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