U.S. cryptocurrency tax compliance is worsening despite growing adoption. A joint survey by Coinbase and Cointracker, published on March 30, 2026, polling 3,000 users, found that 74% acknowledge crypto activities are taxable, but many struggle to accurately report income and adapt to changing obligations.
Key Data Highlights Knowledge Gap
Coinbase posted on X: “We surveyed 3,000 crypto investors about their tax readiness. One number stood out: 76% know cost-basis calculation can be problematic, but only 35% have ever corrected it.” Lawrence Zlatkin, VP of tax at Coinbase, said: “These data reflect a state of uncertainty. Users struggle with crypto tax complexity, and it’s critical for us to help fill that knowledge gap.” Nearly 61% of respondents were unaware of new tax rules for 2025, even though 56% rated their crypto tax understanding as good or excellent.
The introduction of Form 1099-DA for tax year 2025 adds pressure. This form reports gross proceeds from digital asset transactions but often excludes cost basis details when assets are transferred between platforms that don’t share data. If investors fail to self-report cost basis, the IRS may default it to zero, meaning the entire sale is treated as profit, leading to taxes on phantom gains.
Multi-Asset Investors Face Complex Challenges
About 83% of users hold non-crypto assets, and 76% invest in traditional stocks. While 65% have filed crypto taxes, only 49% correctly identify selling crypto as a taxable event, while 41% mistakenly think transferring funds to a bank triggers taxes. Meanwhile, 71% have moved assets between wallets or exchanges, complicating tracking. Only 35% have adjusted cost basis despite 76% acknowledging the need.
Interest in automation is rising: 78% use general tax software, but only 8% use crypto-specific tools. AI adoption is surging: 47% are open to using AI for tax calculations, 43% for strategic recommendations, and 30% would trust AI for the entire process. Shehan Chandrasekera, CPA and head of tax strategy at Cointracker, warned: “Users must be aware of the costly consequences of inaccurate or incomplete digital asset tracking.”
Legislative Pressure Mounts
Lawmakers face growing pressure to modernize crypto tax policy as uncertainty clouds compliance and threatens U.S. competitiveness. With Form 1099-DA now in effect, investors need to quickly understand new rules to avoid severe tax penalties. Industry advocates call for clearer tools and education to bridge the gap between awareness and accurate reporting.