A new survey released on March 30, 2026, by Coinbase and Cointracker sheds light on the deepening tax confusion in the US cryptocurrency market. Based on 3,000 respondents, the data reveals a wide gap between awareness and execution.
The Cost Basis Nightmare
76% of investors acknowledged that cost basis could be problematic, yet only 35% have ever actually fixed it. Lawrence Zlatkin, Vice President of Tax at Coinbase, commented: “The story this data tells is one of uncertainty. Users are struggling to navigate the complexities of crypto taxation.” Nearly 61% of respondents were unaware of updated 2025 tax rules, even though 56% described their understanding of crypto taxation as good or excellent.
Form 1099-DA: A Hidden Trap
For the 2025 tax year, brokers began issuing Form 1099-DA for the first time. The form reports gross proceeds from digital asset transactions but does not include cost basis information. If taxpayers fail to report their own cost basis, the IRS can default it to $0, meaning the entire sale is treated as profit. Coinbase warned: “If you don’t report it yourself, the IRS can default it to $0 — meaning your entire sale is treated as profit, and you could owe taxes on gains that never happened.” This creates a massive risk for investors who move assets across wallets or exchanges without proper recordkeeping.
Investor Behavior and Knowledge Gaps
The survey shows that 83% of users hold assets beyond crypto, and 76% invest in traditional stocks. While 65% had previously reported crypto taxes, 15% have never triggered a taxable event. Confusion persists over what constitutes a taxable event: only 49% correctly identified that selling crypto triggers taxation, while 41% mistakenly believed transferring funds to a bank is taxable. Moreover, 71% have moved assets across wallets or exchanges, complicating tracking. Although 76% acknowledged cost basis adjustments might be required, only 35% have completed them.
Growing Interest in Automation and AI
Investors are increasingly looking for automated solutions. 78% rely on general tax software, 52% consult accountants, but only 8% use crypto-specific tools. Adoption of artificial intelligence is emerging: 47% are open to using AI for tax calculations, 43% for strategy recommendations, and 30% would trust AI for the entire process. Shehan Chandrasekera, CPA and head of tax strategy at Cointracker, stated: “Users need to be aware of the costly repercussions of inaccurate or incomplete digital asset tracking.”
Lawmakers are under growing pressure to modernize cryptocurrency tax policy as uncertainty threatens compliance and US competitiveness. Without clearer rules and better tools, millions of investors could face unexpected tax bills.