US New Crypto Tax Rules Face Challenges in First Filing Season as Exchanges Only Report Sale Proceeds, Not Cost Basis

TechFlow reports, on September 25, according to Cointelegraph, US crypto investors are experiencing their first tax filing season following the implementation of the new Form 1099-DA rules. In 2025, brokers such as exchanges are typically required to report proceeds from certain digital asset sales to the IRS, but are not required to report the cost basis at which investors purchased the assets, meaning the IRS can see the sale proceeds but cannot directly determine actual gains or losses.

A survey conducted by Awaken Tax in August among 1,000 US crypto investors showed that among those who have applied or plan to apply for a tax filing extension, 21% are still waiting for exchanges or crypto platforms to provide the necessary information, and another one-fifth said the 1099-DA information they received was incomplete or could not be verified for accuracy.

Starting in 2026, brokers will generally also be required to report the cost basis of qualified digital assets, but there may still be information gaps for assets transferred from other exchanges or wallets.