U.S. Virtual Asset Investors Who Received IRS Warning Letters Surge by 758% in Two Months
Summary
- The number of Americans who have received warning letters regarding virtual asset investment income reporting from the IRS has surged by 758% in the last 60 days.
- It was explained that, starting January 1, 2026, under the 1099-DA form, total gains and acquisition costs from virtual asset trading must be reported to the tax authorities.
- Although expectations for the abolition of virtual asset taxation in the U.S. have grown since President Donald Trump took office, the obligation to report investment income still remains.
David Kemmerer, CEO of the cryptocurrency tax filing software platform CoinLedger, stated in an interview with The Block on the 27th (local time) that "the number of Americans who have received warning letters from the Internal Revenue Service (IRS) regarding virtual asset investment income reporting has surged by 758% in the last 60 days."
He explained, "Starting January 1, 2026, under the newly introduced 1099-DA form, total gains from virtual asset trading and acquisition costs must be reported to the tax authorities," adding, "Once the new regulation takes effect, not only investors but also brokers will be required to report virtual asset investment gains to the IRS."
He further added, "Although expectations for the abolition of virtual asset taxation in the U.S. have grown since President Donald Trump took office, there are many cases where some investors mistakenly believe that they no longer need to report virtual asset investment income."
JH Kim
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