In this news:
Bitcoin resting on a calculator beside IRS Form 1040, symbolizing cryptocurrency trading and ... More individual income tax obligations. Concept: it’s time to pay taxes on crypto transactions.
Tax season is in full swing, and if you’ve touched crypto—whether through buying, selling, staking, or trading NFTs—you need to know: the IRS is watching.
In recent years, the Internal Revenue Service (IRS) has increased its scrutiny of digital asset activity. It classifies cryptocurrencies and other digital assets, including non-fungible tokens (NFTs), as property—not currency—for tax purposes. This distinction carries significant implications: property is subject to capital gains taxation when sold or exchanged, unlike traditional currencies. So even though “currency” is in the name, crypto is treated more like stocks or real estate than dollars or euros in the eyes of the IRS.
For anyone who owns or transacts in digital assets, proper tax reporting is no longer optional. Let’s break down the five key things you must do before the filing deadline of April 15, 2025, and explore three proactive steps you can take now to make tax time next year significantly easier.
Heads Up to Accountants, Bookkeepers, and Tax Professionals
If you are a bookkeeper, CPA, or enrolled agent preparing returns or advising clients who touch crypto in any capacity, you must get up to speed—immediately. Digital assets are no longer a fringe topic; they are increasingly mainstream financial instruments with complex and unique tax implications.
Failure to ask the right questions, understand the mechanics of digital asset transactions, or properly classify and report these events can expose your client to penalties, audits, and unnecessary scrutiny. More importantly, it may expose you to professional liability.
Some exchanges issue Forms 1099-B, 1099-K, or newer iterations like 1099-DA, while others do not issue tax forms at all. Inconsistent reporting standards mean that relying solely on client-provided tax documents from platforms like Coinbase, Binance, or Kraken may lead to major gaps in reporting. In 2026, mandatory broker reporting requirements will further complicate the landscape; but they won't necessarily simplify it.
.png)
