Exchanges reporting crypto gains to IRS becomes tax nightmare
60-second summary
The IRS now receives detailed reports of cryptocurrency gains from exchanges, yet it lacks information on investors’ cost‑basis, forcing many to reconstruct purchase histories manually; this mismatch creates a tax‑filing nightmare as traders scramble to prove original values, potentially inflating liabilities and prompting broader calls for clearer reporting standards across the industry.
The IRS can now see your crypto gains, but has no idea about the cost-basis. That’s proving to be a big headache for some cryptocurrency investors.