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

ME News Report, April 15 (UTC+8), a new study shows that a large number of cryptocurrency investors may not have reported their holdings and transactions to the IRS. Assistant Professor Tyler Menzer of Texas Christian University and his co-authors analyzed anonymous IRS tax data and found that between 2013 and 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 behaviors differ significantly from traditional stock investors. Data from CoinTracker shows that in the 2025 tax year, crypto investors on average need to report 836 transactions, with short-term holdings averaging a loss of $636, and long-term holdings averaging a profit of $2,692. The IRS has strengthened reporting requirements for 2026, requiring exchanges to issue transaction forms, and taxpayers must report their crypto holdings regardless of whether they receive a 1099-DA form. (Source: PANews)