Just 6.5% of U.S. Crypto Users Reported Transactions to IRS, Study Finds

The United States requires gains from cryptocurrency transactions to be reported for federal tax purposes. But decentralized trading, self-custodied wallets and still-evolving early reporting rules have made it difficult for tax authorities to capture the full extent of taxable income. An estimated 12%–21% of U.S. adults hold cryptocurrency, making the reporting gap significant for the tax base, fairness and regulatory effectiveness.

A study of U.S. tax return data from 2013 to 2021 found that only 6.5% of cryptocurrency users had reported transactions to the Internal Revenue Service. The data also showed that early crypto investors were younger and had lower incomes, with substantially lower tax compliance than traditional investors, underscoring that a stable taxpaying culture has yet to take hold in the crypto market.