The IRS finalized comprehensive cryptocurrency tax regulations in October 2025, introducing a $600 transaction threshold requiring detailed reporting beginning January 2026. The updated rules mandate that crypto exchanges, DeFi protocols, and NFT marketplaces report user transactions exceeding the threshold through Form 1099-DA, affecting an estimated 52 million U.S. crypto holders. Tax software providers including CoinTracker, Koinly, and TurboTax have launched enhanced DeFi tracking features to help users calculate cost basis across multiple wallets and protocols.
Tax professionals forecast increased IRS enforcement throughout 2026-2027, recommending crypto investors maintain detailed transaction records and consult specialists as penalties for non-compliance can reach 75% of unpaid taxes plus interest.
