Half of US crypto users misread taxes as IRS eyes e-forms

A survey of 3,000 U.S. crypto users by Coinbase and CoinTracker found that only 49% correctly understand that digital assets are taxable when sold. The poll, conducted Sept. 9 to Oct. 3, precedes the 2025 tax reporting season. The findings are published in the 2026 Crypto Tax Readiness Report and arrive as the IRS has proposed requiring brokers to deliver digital asset tax forms electronically. Brokers are preparing to issue Form 1099-DA for the 2025 tax year that will report proceeds but omit cost basis.

Basic rules remain unclear for many users. Nearly one in four respondents believes simple wallet-to-wallet transfers can trigger taxes in crypto, though those transfers generally are not taxable events. At the same time, 74% reported awareness that crypto is taxable, and 65% indicated they have disclosed crypto activity in prior filings.

Under the IRS proposal, crypto brokers would be required to provide tax forms electronically, removing paper delivery. Brokers could end relationships with users who refuse electronic delivery, and users would not be able to withdraw consent once given. Form 1099-DA is set to report gross proceeds beginning with the 2025 tax year, but it will not show cost basis.

Tracking purchase and sale history may be difficult across multiple platforms. Respondents reported an average of 2.5 wallets or exchanges, and 83% use self-custody. Because platforms do not share data, users may need to assemble records from several accounts to calculate gains and losses.

Despite the knowledge gaps, 56% rated their understanding of crypto tax reporting as good. Most rely on traditional tools: 78% use general tax software and 52% work with accountants, while 8% use crypto-specific tax services. Nearly half of respondents would use artificial intelligence to help calculate crypto taxes, and 30% are open to relying on AI for the entire process.

“This refutes the misconception of widespread crypto tax avoidance,” according to the report.

Beginning with the 2025 tax year, Form 1099-DA will provide the IRS and taxpayers with gross proceeds from digital asset transactions. Because the form omits cost basis, taxpayers will need their own records to determine profits or losses. The IRS proposal would standardize electronic delivery of those forms by exchanges and other brokers.