Bloomberg: A large number of U.S. cryptocurrency investors may have failed to disclose their assets to the IRS.

According to Bloomberg, a new report indicates that many U.S. cryptocurrency investors may have failed to report their digital asset holdings to the Internal Revenue Service (IRS). Tyler Menzer, an assistant professor at Texas Christian University, and his co-authors analyzed anonymized IRS tax data and found that between 2013 and 2021, only 6.5% of taxpayers reported cryptocurrency sales—despite surveys from the same period indicating that 12% to 21% of U.S. adults had held cryptocurrency. The analysis suggests that some investors’ failure to accurately report cryptocurrency-related income and transactions may result in tax revenue losses. The study also found that cryptocurrency holders are more likely to hold meme tokens, tend to be younger and have lower incomes, and exhibit trading behaviors markedly different from those of traditional stock investors. CoinTracker data shows that for the 2025 tax year, cryptocurrency investors on average need to report 836 transactions; short-term holdings yield an average loss of $636, while long-term holdings generate an average gain of $2,692.