TLDR Tech / Crypto
IRS Intensifies Crypto Tax Enforcement Ahead of April 15 Deadline
Form 1099-DA debuted in the 2025 tax year, requiring brokers to report gross proceeds from digital asset transactions to both taxpayers and the IRS, moving crypto reporting toward traditional brokerage standards. Brokers are not required to report cost basis, placing full reconciliation responsibility on investors and creating overpayment exposure for those who treat exchange-issued forms as complete records. IRS Criminal Investigation is escalating enforcement against crypto tax evasion ahead of the April 15 deadline, with criminal fraud penalties reaching $100K and five years imprisonment, while surveys show 61% of US crypto investors remain unaware of the new reporting rules.
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