IRS Strengthens Cryptocurrency Tax Enforcement as Filing Deadline Approaches

According to DL News, the U.S. Internal Revenue Service (IRS) is intensifying its crackdown on cryptocurrency-related tax evasion, with particular focus on new reporting requirements for the 2025 tax year. The IRS’s Criminal Investigation Division has prioritized cryptocurrency tax cases, and investors must proactively report relevant transactions before the April 15 tax-filing deadline. Starting in 2025, Form 1099-DA—introduced for the first time—requires brokers to report investors’ total digital asset transaction proceeds to both investors and the IRS; however, investors themselves must calculate and verify their cost basis. Reports from Coinbase and CoinTracker indicate that approximately 61% of U.S. cryptocurrency investors are unaware of the new rules, and 52% fear penalties resulting from filing errors. Experts advise investors to gather all transaction records and file accurate returns to avoid criminal penalties, including fines of up to $100,000 and imprisonment for up to five years.