US Crypto Investors Concerned Over New IRS Tax Rule Triggering Penalties

BlockBeats News, February 18th, according to CoinDesk's report, cryptocurrency tax platform Awaken Tax's survey shows that over 50% of U.S. crypto investors are worried about facing IRS penalties this year. The new regulation requires brokers like Coinbase to report all digital asset transactions to the IRS for 2025 through the 1099-DA form to combat tax evasion. The IRS will for the first time obtain exchange internal data and compare it with taxpayer filings.

Awaken Tax founder Andrew Duca pointed out that this rule equates crypto assets to stocks, but the actual operation is complex: users often transfer assets between multiple wallets, interact with DeFi, and brokers can only report proceeds from sales without providing cost basis, making the submitted forms incomplete. Taxpayers need to supplement cost information themselves using the 8949 form. Currently, the crypto tax compliance rate is less than 20%.