What should I do about crypto tax debt?
Selling or trading crypto can create tax. Starting with 2025 sales, brokers report digital asset sales on the new Form 1099-DA, so the IRS sees more of them.
For tax, a digital asset is any value recorded on a blockchain or similar tech. Cryptocurrency is one kind.
Your basis is usually what you paid in US dollars. Gain or loss is the difference when you sell or trade.
If the IRS sees income that doesn't match your return, it may send a CP2000.
Key facts
- Every Form 1099-DA
- What you paid for each coin (your basis)
- Old years with trades you didn't report
- Any CP2000 notice
- Your total balance due
Options that may help
Fix years with missing sales using Form 1040-X.
Spread the bill out if you can't pay.
Crypto basis can be complex. A CPA or enrolled agent can help.
Results depend on your situation. Not every case qualifies.
Common questions
Is Form 1099-DA new?
Yes. It starts with transactions on or after Jan 1, 2025, reported in 2026.
Source: IRS: Digital assets
General information, not tax or legal advice. You can contact the IRS yourself for free at irs.gov.