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Crypto Regulation

IRS Crypto Gain Reports Lack Cost-Basis Data, Creating Tax Headaches

The IRS can now see cryptocurrency gains reported by exchanges, but lacks cost-basis information, creating a significant headache for some cryptocurrency investors. The mismatch between reported gains and missing cost-basis data is complicating tax compliance for those affected.

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AI take

The asymmetry here is structural: exchanges report proceeds, not the basis needed to compute what is actually owed, so the burden of proof shifts to the taxpayer. That matters most for anyone who moved assets across venues or wallets, where records are hardest to reconstruct. Whether the IRS sharpens its reporting expectations for exchanges, or whether reconciliation remains the individual's problem, is the open question worth watching.

Generated by AI for reference only.

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