Crypto Tax Forms Leave US Traders Facing Cost-Basis Gaps
Crypto tax forms are creating major filing challenges for US traders during the first reporting season for Form 1099-DA. An Awaken Tax survey of 1,000 investors found that 21% of people who had filed or planned to file a tax extension were still waiting for exchange information or were unsure whether their forms matched their trades.
For 2025 transactions, brokers generally reported gross sale proceeds, while cost-basis reporting was mostly voluntary. A Form 1099-DA may therefore omit the original purchase price, fees, transfers and wallet activity. Traders must reconcile the form with exchange statements, wallet records and complete transaction histories before calculating crypto gains or losses.
Tax advisers reported missing trades, delayed forms, inconsistent formats and large differences in stablecoin transaction totals. Active traders may need to enter hundreds of transactions manually because some tax software cannot reconcile 1099-DA data automatically.
Tax returns under an approved extension are due by 15 October, but tax payments were generally due by the original deadline. The IRS advises taxpayers to request corrected forms when needed rather than delay filing. For 2026 transactions, brokers will generally have to report cost basis for certain digital assets purchased through custodial brokers after 2025. Assets transferred from other platforms or acquired earlier may remain noncovered, so accurate records will remain essential.
Neutral
The news is unlikely to have a direct and sustained effect on cryptocurrency prices, so the market view is neutral. In the short term, reporting uncertainty may prompt some US traders to reduce activity, sell assets to cover tax liabilities or avoid complex transactions. These actions could create limited, temporary selling pressure, particularly around tax deadlines, but they are unlikely to alter broader market trends.
Over the longer term, mandatory cost-basis reporting for certain 2026 transactions could improve compliance and reduce uncertainty for assets bought through custodial brokers. However, transferred and previously acquired assets may remain difficult to document. The main impact is operational: traders may face higher record-keeping costs, while exchanges and tax software providers may see demand for reconciliation tools. Historical reactions to tax-reporting changes generally suggest limited price impact unless they trigger broad forced selling or major regulatory restrictions, neither of which is indicated here.