The report says that 31% of investors do not file cryptocurrency taxes with the IRS
CoinLedger revealed that 31% of cryptocurrency investors still need to report cryptocurrency taxes to the Internal Revenue Service (IRS).
1 in 3 cryptocurrency investors are tax shy
According to an online survey of 305 US adults conducted by YouGov in collaboration with CoinLedger, 31% of bitcoin (BTC) and cryptocurrency investors still need to report crypto assets in their tax filings.
Non-compliance with cryptocurrency tax reporting has been attributed to several factors, including the need to understand the tax implications of cryptocurrency transactions. The survey found that only 38% of cryptocurrency investors correctly identified the types of crypto transactions subject to taxation.
“It’s no secret that tax reporting is a huge problem in the cryptocurrency industry. The level of non-compliance may be shocking to some, but it’s not surprising given the lack of regulatory clarity and enforcement protections in the space.”
David Kemmerer, CEO, CoinLedger
58% of respondents indicated that they reported cryptocurrency on their tax filings, while 50% of non-taxpayers cited lack of profit as a reason for not paying taxes on their crypto investments.
Cryptocurrency tax evasion is expected to decrease
Moreover, 68% of the respondents indicated that they would find it easier to file their taxes correct if given more information and guidance on exercising through cryptocurrency exchange platforms.
With cryptocurrency market participants like Binance, Cryptiony, and a few others now making efforts to create tools that simplify crypto tax reporting, coupled with increased scrutiny from tax authorities like the IRS, as well as those across other jurisdictions, cryptocurrency tax evasion is It is expected to decrease significantly in the future.