US crypto holders are facing uncertainty due to new IRS rules requiring crypto exchanges, such as Coinbase, to issue Form 1099-DA, which reports gross proceeds from 2025 transactions without providing cost basis information. According to Andrew Duca, founder of Awaken Tax, these regulations are seen as a “blunt instrument” crafted by legislators lacking understanding of the crypto industry. Consequently, it falls upon individual crypto holders to independently calculate and report their actual tax basis, adding complexity to their tax obligations.
Coinbase faces IRS mandate to auto-report user transactions for 2025
