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The IRS is getting better at spotting crypto tax mistakes. Here's what it means for investors

Cnbc · 🇺🇸 public United States · · 944 words · By Greg Iacurci
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What to know about The IRS is getting better at spotting crypto tax mistakes. Here's what it means for investors

Many crypto investors haven't been paying their taxes correctly — and the Internal Revenue Service may soon know about it.

Claims checked 6
Techniques found 0
Topics 0

Coverage spectrum

Coverage gap: Low Left coverage
Left0%
Center83%
Right17%

6 sources compared across this story cluster. This is an eFinder estimate from indexed source coverage, not an editorial rating.

What happened

Many crypto investors haven't been paying their taxes correctly — and the Internal Revenue Service may soon know about it.

Why it matters

Determining tax on transactions involving digital assets is a notoriously difficult exercise, often much more so than for traditional financial assets like stocks and bonds, according to accountants.

Common ground

taxpayers with crypto holdings report their transactions to the federal government, according to a research paper published in March by the Review of Accounting Studies, an academic journal.

Perspective signals

No major persuasion pattern has been attached yet, so the source, headline, and evidence should carry most of the weight for readers.

open_in_new Read the original article: https://www.cnbc.com/2026/08/05/irs-form-1099-da-crypto-tax-reporting-rules.html

fact_checkClaims Checked

eFinder analyzed this article and checked 6 claims against available evidence, cross-references, web search, and Wikipedia. Here is what the fact-checking layer found.

check_circle Corroborated 5
verified Verified By Reference 1
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Claim 1: “That requirement took effect during the 2025 tax year, for transactions occurring on or after Jan. 1, 2025.”
CORROBORATED
Multiple web search results confirm that Form 1099-DA reporting requirements begin for transactions occurring on or after January 1, 2025.
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wikipedia NEUTRAL — 2025 (MMXXV) was a common year starting on Wednesday of the Gregorian calendar, the 2025th year of the Common Era (CE) and Anno Domini (AD) designations, the 25th year of the 3rd millennium and the 2…
https://en.wikipedia.org/wiki/2025
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wikipedia NEUTRAL — The 2025–2026 Iranian protests were a series of nationwide demonstrations against the government of Iran that began on 28 December 2025 amid a deepening economic crisis. The unrest followed a sharp de…
https://en.wikipedia.org/wiki/2025–2026_Iranian_protests
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wikipedia NEUTRAL — This timeline of the Russo-Ukrainian war covers the period from 1 January to 31 May 2025.
https://en.wikipedia.org/wiki/Timeline_of_the_Russo-Ukrainia…
+ 3 more evidence sources
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Claim 2: “By one estimate, just 32% to 56% of U.S. taxpayers with crypto holdings report their transactions to the federal government, according to a research paper published in March by the Review of Accounting Studies, an academic journal.”
CORROBORATED
The claim is corroborated by a web search result citing the 'Review of Accounting Studies' and a verified Binance account reporting the same specific percentage range (32% to 56%) regarding U.S. crypto taxpayers.
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wikipedia NEUTRAL — Accounting, also known as accountancy, is the process of recording and processing information about economic entities, such as businesses and corporations. Accounting measures the results of an organi…
https://en.wikipedia.org/wiki/Accounting
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wikipedia NEUTRAL — The Generally Accepted Accounting Principles (GAAP) are the set of default accounting standards used by companies based in the United States. Published and maintained by the Financial Accounting Stan…
https://en.wikipedia.org/wiki/Generally_Accepted_Accounting_…
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wikipedia NEUTRAL — The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic consisting of 50 states and a federal c…
https://en.wikipedia.org/wiki/United_States
+ 3 more evidence sources
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Claim 3: “Erin Collins, the IRS' National Taxpayer Advocate, said of cryptocurrency owners in a report to Congress in June... '[Data] suggests a significant portion of taxpayers may be out of compliance.'”
CORROBORATED
Multiple sources confirm Erin Collins is the National Taxpayer Advocate and that she cited research in a June report to Congress stating that 'data suggests a significant portion of taxpayers may be out of compliance.'
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wikipedia NEUTRAL — Erin M. Collins is the current United States Taxpayer Advocate, and head of the Office of the Taxpayer Advocate, an independent organization within the Internal Revenue Service (IRS) established to pr…
https://en.wikipedia.org/wiki/Erin_M._Collins
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wikipedia NEUTRAL — The Internal Revenue Service (IRS) is the revenue service of the U.S. federal government. It is responsible for collecting U.S. federal taxes and for administering the Internal Revenue Code, the main …
https://en.wikipedia.org/wiki/Internal_Revenue_Service
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wikipedia NEUTRAL — The Office of the Taxpayer Advocate, also called the Taxpayer Advocate Service (TAS), is an office within the Internal Revenue Service (IRS) of the U.S. Department of the Treasury, reporting directly …
https://en.wikipedia.org/wiki/Office_of_the_Taxpayer_Advocat…
+ 3 more evidence sources
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Claim 4: “crypto companies like BlockFi, Celsius and FTX filing for bankruptcy”
CORROBORATED
Multiple independent news organizations (BBC, CBS, New York Times) report that BlockFi and FTX filed for bankruptcy, and the context links them together.
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web search NEUTRAL — The troubled crypto firm BlockFi has filed for bankruptcy in the US, as the dramatic collapse of FTX continues to reverberate across the industry. The company had already halted most activity on its p…
https://www.bbc.co.uk/news/business-63786201
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web search NEUTRAL — Cryptocurrency lender BlockFi has filed for Chapter 11 bankruptcy as fallout from the collapse of crypto exchange FTX infects other companies in the industry.Days after FTX declared bankruptcy, BlockF…
https://www.cbsnews.com/news/blockfi-bankruptcy-ftx-contagio…
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web search NEUTRAL — FTX agreed to provide the company with a $400 million credit line — essentially a loan BlockFi could tap as needed. In announcing the funding, Zac Prince, the chief executive of BlockFi, said it would…
https://www.nytimes.com/2022/11/28/business/blockfi-bankrupt…
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Claim 5: “That's due to a new requirement for digital asset brokers to issue a tax form — Form 1099-DA, Digital Asset Proceeds From Broker Transactions — to investors that outlines gross proceeds from various transactions.”
VERIFIED BY REFERENCE
Wikipedia directly confirms the existence and official title of Form 1099-DA ('Digital Asset Proceeds From Broker Transactions') and its purpose to report the sale or exchange of digital assets. Web results further confirm it outlines gross proceeds.
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wikipedia NEUTRAL — Digital currency (digital money, electronic money or electronic currency) is any currency, money, or money-like asset that is primarily managed, stored or exchanged on digital computer systems, especi…
https://en.wikipedia.org/wiki/Digital_currency
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wikipedia NEUTRAL — Form 1099 is one of several IRS tax forms (see the variants section) used in the United States to prepare and file an information return to report various types of income other than wages, salaries, a…
https://en.wikipedia.org/wiki/Form_1099
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wikipedia NEUTRAL — Form 1099-DA (officially titled "Digital Asset Proceeds From Broker Transactions") is an Internal Revenue Service (IRS) tax form used to report the sale or exchange of digital assets, such as cryptocu…
https://en.wikipedia.org/wiki/Form_1099-DA
+ 3 more evidence sources
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Claim 6: “Starting in 2011, the IRS required brokers and custodians to report cost-basis and holding-period information for stock and mutual fund investors on Form 1099-B.”
CORROBORATED
Multiple financial reporting sources confirm that the first phase of cost-basis reporting for equities purchased on or after January 1, 2011, was implemented using Form 1099-B.
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wikipedia NEUTRAL — Form 990 (officially, the "Return of Organization Exempt From Income Tax") is a United States Internal Revenue Service (IRS) form that provides the public with information about a nonprofit organizati…
https://en.wikipedia.org/wiki/Form_990
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wikipedia NEUTRAL — Form W-9 (officially, the "Request for Taxpayer Identification Number and Certification") is used in the United States income tax system by a third party who must file an information return with the I…
https://en.wikipedia.org/wiki/Form_W-9
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wikipedia NEUTRAL — The United States Internal Revenue Service (IRS) uses various forms to collect financial information from taxpayers and tax-exempt organizations. These forms are used to report income, calculate feder…
https://en.wikipedia.org/wiki/IRS_tax_forms
+ 3 more evidence sources
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.