The Hidden Crypto Tax Crisis
New research by Summ (formerly Crypto Tax Calculator) shows that 70% of Americans don't understand their crypto tax obligations. Here's what needs to change.
Starting this year, crypto exchanges start collecting your detailed transaction data to share with the IRS. If you’ve been unsure about how to report your crypto on your taxes, you could already be at risk of an audit.
To help clear things up, we surveyed 1,516 American Crypto Traders and discovered the biggest misconceptions about crypto tax.
We found that an overwhelming majority of Americans are making mistakes that put them at a heightened risk of an audit by the IRS.
Here's what you need to know if you want to stay on the IRS' good side this year.
Misconception #1
Misconception #2
Misconception #3
The Rising Pressure from Regulators: Global and U.S. Compliance Crackdowns
While United States crypto investors remain unclear on their obligations, regulators are tightening oversight, requiring greater transparency in crypto taxation.
In the U.S., 1099-DA reporting now mandates centralized exchanges to report transactions to the IRS, while CARF, adopted by over 50 OECD countries, sets a global crypto tax standard. These efforts aim to close tax gaps and enforce compliance.
Crypto traders must evolve past outdated assumptions about anonymity and taxation. New regulations mean the IRS has more tools than ever to enforce compliance.
- Shane Brunette, CEO, Summ (formerly Crypto Tax Calculator)
Behind on your tax? There’s still time to act
With the new data-sharing arrangements starting this year, the age of excuses is over – taxpayers need to get their reporting in order to avoid stiff penalties and fines.
But you still have time to act before the April 15 deadline.
Summ is designed to meet the rigorous reporting standards of the IRS.
Simply connect your exchange accounts and wallets and let our software do the rest. It will analyse all of your transactions – including complicated activities like DeFi – and produce a tax report ready for the IRS.
A single plan lets you download reports for all previous tax years, so if you’re behind on your reporting we’re here to help you catch-up.
No guesswork. No headache. No more tax nightmare.
IRS compliant tax reports
Dive into the data
The information provided on this website is general in nature and is not tax, accounting or legal advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and seek professional advice. Summ (formerly Crypto Tax Calculator) disclaims all and any guarantees, undertakings and warranties, expressed or implied, and is not liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or Consequential Loss or damage) arising out of, or in connection with, any use or reliance on the information or advice in this website. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information in this website is no substitute for specialist advice.
Nick is a licensed attorney and the Head of Tax at Summ (formerly Crypto Tax Calculator), with over 6 years of experience in the crypto tax space. He has previously held key roles at Deloitte and TurboTax, focusing on digital asset taxation and blockchain compliance. At Summ, Nick helps drive the development of a leading software that enables taxpayers around the world to accurately and efficiently complete their crypto taxes.
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