Research: Only 6.5% of crypto holders report transactions to the IRS, underreporting is widespread

ME News, April 15 (UTC+8). A new study shows that many cryptocurrency investors may not have reported their holdings and transactions to the U.S. Internal Revenue Service (IRS). Assistant Professor Tyler Menzer of Texas Christian University and his co-authors analyzed anonymous IRS tax data and found that from 2013 to 2021, only 6.5% of taxpayers reported cryptocurrency sales, while surveys during the same period indicated that 12% to 21% of American adults had held cryptocurrencies. The study found that cryptocurrency holders are more likely to hold meme stocks, are younger and have lower incomes, and their trading behavior differs significantly from that of traditional stock investors. CoinTracker data shows that for the 2025 tax year, cryptocurrency investors on average need to report 836 transactions, with average losses of $636 on short-term holdings and average profits of $2,692 on long-term holdings. The IRS has strengthened its reporting requirements for 2026, requiring exchanges to issue transaction forms, and taxpayers must report their cryptocurrency holdings regardless of whether they receive a 1099-DA form. (Source: PANews)