A new survey reveals that a majority of cryptocurrency users in the United States lack a clear understanding of fundamental tax obligations. Only 49% of respondents correctly identified that crypto becomes taxable at the point of sale, while nearly a quarter mistakenly believed that simple transfers between wallets could trigger a tax event. The findings are drawn from the 2026 Crypto Tax Readiness Report, published jointly by Coinbase and CoinTracker.
The report is based on responses from 3,000 US crypto users surveyed between September 9 and October 3, ahead of the 2025 tax reporting season. Despite widespread confusion about specific rules, the data suggests a general willingness to comply. Some 74% of respondents said they are aware that crypto is taxable, and 65% reported having already filed crypto-related activity in prior years. The report states this evidence refutes the assumption that crypto tax avoidance is widespread.
Several structural challenges complicate accurate tax reporting for crypto holders. On average, investors maintain 2.5 wallets or exchange accounts, and 83% use some form of self-custody. This fragmentation across platforms makes it difficult to track cost basis, which is essential for calculating capital gains and losses.
New regulatory requirements are adding further complexity. Starting with the 2025 tax year, brokers are required to issue Form 1099-DA to report transaction proceeds, but these forms will not include cost basis information. As a result, investors must reconcile their own transaction histories across platforms that do not share data with one another, placing a significant administrative burden on individual users.
Most crypto investors continue to rely on conventional tools when filing taxes. Approximately 78% use general tax software and 52% consult accountants, while only 8% turn to crypto-specific tax services. Interest in artificial intelligence as a tax aid is growing, however, with nearly half of respondents saying they would use it to help calculate taxes and 30% indicating they would be open to relying on it for the entire filing process.
Separately, the Internal Revenue Service has proposed new rules that would require crypto exchanges to deliver tax forms electronically, eliminating the option for paper copies. Under the proposal, brokers would be permitted to end relationships with users who decline digital delivery, and users would lose the ability to withdraw their consent once it has been given. Exchanges would still be required to issue Form 1099-DA to document transaction proceeds, while cost basis tracking would remain the responsibility of individual investors.
Originally reported by CoinTelegraph.
