Only 32%-56% of US Crypto Holders Report Trades, Study Estimates

CNBC has reported on a research paper published in the March issue of the academic journal Review of Accounting Studies. The study estimates that only 32% to 56% of cryptocurrency holders in the United States have declared their transactions to the federal government. The findings highlight the low rate of tax reporting among crypto investors. Separately, the U.S. Internal Revenue Service (IRS) will require brokers to send investors Form 1099-DA starting in the 2025 tax year. The form will summarize an investor's total proceeds from digital asset transactions. Accountants say that calculating taxes on digital assets has always been extremely complicated, often much harder than doing so for traditional financial instruments like stocks and bonds. The complexity of crypto tax computation is widely noted by accounting professionals.