Research: Only 6.5% of crypto holders report transactions to the IRS, indicating widespread underreporting.

CoinFeed reported on April 15th, citing Bloomberg, that a new study reveals a significant number of cryptocurrency investors may not be reporting their holdings and transactions to the IRS. Tyler Menzer, an assistant professor at Texas Christian University, and his co-authors analyzed anonymized IRS tax data and found that between 2013 and 2021, only 6.5% of taxpayers reported cryptocurrency sales, while a survey during the same period showed that 12% to 21% of U.S. adults had held cryptocurrency. The study found that cryptocurrency holders are more likely to hold Meme stock, are younger, and have lower incomes, exhibiting trading behavior significantly different from traditional stock investors. CoinTracker data shows that in the 2025 tax year, crypto investors are required to report an average of 836 transactions, with short-term holdings averaging a loss of $636 and long-term holdings averaging a profit of $2,692.