More than 50% of US investors fear IRS penalties due to new regulations implemented this year

Odaily News A survey of 1,000 US cryptocurrency holders reveals that over 50% of investors are concerned about facing IRS penalties due to new transparency regulations implemented this year. According to the new rules, cryptocurrency exchanges like Coinbase are required to submit Form 1099-DA to the IRS, reporting all digital asset sales and exchange activities during 2025. Andrew Duca, founder of Awaken Tax, stated that exchanges can only provide information on sales proceeds and cannot report the asset's acquisition cost and tax basis. Cryptocurrency holders need to supplement the missing acquisition cost and actual tax basis themselves using the updated Form 8949. Currently, cryptocurrency tax compliance is below 20%, and the new regulations aim to increase this rate.