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Starting January 1, 2025, the IRS is about to shake up the crypto world—and if you’re not ready, it could cost you BIG.
We’re talking millions of new 1099-DAs flooding inboxes, reporting every buy, sell, and transfer of crypto. Sounds good in theory, right? Well, here’s the problem: many of these reports will be DEAD WRONG.
What’s Changing?
Right now, crypto transactions are loosely tracked, and many people operate under the radar. But that ends in 2025.
Under new IRS regulations (Sections 6045 and 6050), exchanges, brokers, and even some payment processors will have to report all crypto sales and transfers directly to the IRS.
Bought Bitcoin for $100K, then sold for $50K?
Your 1099-DA might just show that you received $50K—without mentioning your loss. The IRS could assume you made $50K instead of losing money!
Traded crypto all year long?
Each trade could generate its own 1099-DA. Imagine getting hundreds of these forms, trying to sort them out while the IRS watches your every move.
Why This Could Be a Disaster
The IRS will receive billions of these reports—and if they’re inaccurate, guess who has to fix them? YOU.
- More audits.
- More tax bills.
- More paperwork headaches.
And if you don’t correct the errors, you could end up paying taxes on income you never actually made.
How to Stay Ahead of the IRS
The IRS is watching crypto like never before, and with millions of 1099-DAs about to flood taxpayers, the risk of errors, audits, and unexpected tax bills is higher than ever. If you’re involved in crypto—whether as an investor, trader, or business owner—you can’t afford to wait. Keeping detailed transaction records, using tax software, and working with a professional are no longer optional—they’re essential. The last thing you want is to be caught off guard, scrambling to correct IRS mistakes or, worse, paying taxes on money you never made.
Start preparing now so that when 2025 rolls around, you’re ahead of the game. If you need guidance, IRSProb has your back—because dealing with crypto taxes shouldn’t feel like a guessing game.
