A lot of U.S. crypto investors are heading into tax season without really knowing what’s changed.

And this year, that’s a bigger problem than usual.

A new report from Coinbase and CoinTracker found that around 61% of investors aren’t aware of the latest IRS rules tied to crypto reporting. That’s not a small gap — especially with the April 15 deadline getting close.

People Know Taxes Matter… Just Not How They Work

What’s interesting is that this isn’t about people ignoring taxes.

Most actually do know crypto is taxable. Around three-quarters of those surveyed said as much. And more than half even rated their own knowledge as “excellent.”

But when it comes to the new rules specifically? That’s where things fall apart.

There’s a difference between knowing something exists and actually understanding how to deal with it.

The Real Issue: It’s Messy

The biggest headache right now is how complicated everything has become.

The IRS introduced new reporting requirements through Form 1099-DA, and on paper, it sounds simple enough — report your crypto transactions.

In practice, it’s anything but simple.

For 2025 filings, platforms don’t have to provide full cost basis data. So if you’ve been moving funds between exchanges, using multiple wallets, or touching DeFi even once… you’re basically on your own trying to piece it all together.

And yeah, that’s where most people get stuck.

Why This Trips People Up

Crypto isn’t like buying a stock and forgetting about it.

People move assets around. They swap tokens. They bridge, stake, experiment. Every one of those actions can trigger something tax-related — even if it doesn’t feel like it should.

Now imagine trying to track all of that manually over a year.

It’s not realistic for most users.

The Risk Isn’t Just Theoretical

To be clear, most people aren’t going to face extreme penalties over small mistakes.

But the rules themselves aren’t light. In serious cases — actual fraud — fines can go up to $100,000, plus legal consequences.

That’s not the average situation. Still, it shows how seriously this is treated.

Crypto Investors Aren’t “Niche” Anymore

Another thing the report makes obvious: crypto investors look a lot like regular investors now.

Most of them also own stocks. Many hold bonds, real estate, or other assets. This isn’t some isolated group anymore — it’s part of the broader financial system.

Which makes the tax side even more important.

Where This Leaves Things

Right now, the situation is kind of awkward.

People want to do things right. The intent is there. But the system isn’t exactly helping — at least not yet.

Until reporting gets easier, or tools get better, this gap between “I think I understand” and “I actually do” is probably going to stick around.

And that’s where mistakes tend to happen.

Most Crypto Investors Still Don’t Understand New IRS Rules — And That Could Be Costly

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