US Taxpayers Face Challenges with New Crypto Reporting Rules
- 21% of US crypto investors are still waiting for necessary tax information from exchanges.
- One in five taxpayers reported their 1099-DA forms were incomplete or inaccurate.
- Brokers must report gross proceeds but not cost basis, complicating tax calculations for active traders.
- Discrepancies between reported figures and actual transactions have been noted by tax professionals.
- From next year, brokers will be required to report cost basis for covered digital assets, easing some reporting burdens.
As the IRS gains more visibility into crypto transactions, taxpayers are struggling with incomplete data from exchanges and the need to calculate their own gains and losses. The new 1099-DA requirements have led to confusion and discrepancies in reporting, making compliance more challenging.
With one in five taxpayers unsure about their 1099-DA accuracy, the upcoming changes in reporting rules may provide some relief starting next year as brokers will need to include cost basis information.(Source)
