HomeFinance NewsPersonal financeCrypto Tax Tsunami: IRS Set to Unleash 'Tidal Wave' of Audits

Crypto Tax Tsunami: IRS Set to Unleash ‘Tidal Wave’ of Audits


Tax pros brace for ‘tidal wave’ of crypto tax scrutiny from the IRS. What investors need to know


The IRS has hired former crypto experts to strengthen its monitoring of digital currency activities.

Tax professionals anticipate increased scrutiny as the agency prioritizes digital assets.

The IRS has pursued criminal investigations involving unreported crypto income and uses a question on tax returns to gather data.

Proposed regulations aim to improve reporting in 2025, but current reporting methods remain inconsistent.

As the IRS bolsters its expertise and adjusts regulations, crypto tax reporting is becoming more stringent.

  • Overall sentiment: Negative
  • Positive


    “- While crypto tax reporting is still in flux, tax pros are expecting increased scrutiny.”

    “- As the IRS bolsters its cryptocurrency expertise, tax professionals are bracing for increased scrutiny of digital currency.”

    “- With billions of funding enacted via the Inflation Reduction Act, the IRS has focused on reversing historically low audit rates of higher earners, corporations and complex partnerships.”

latest articles

explore more