Crypto Taxes: Navigating Complex IRS Policies in 2025

As the U.S. tax season approaches, crypto investors face the daunting task of navigating complex IRS policies and organizing data from multiple exchanges, wallets, and decentralized platforms. Despite President Donald Trump's administration's commitment to pro-crypto regulatory reform and rumors of capital gains tax cancellations for Bitcoin (BTC) and some U.S.-based cryptocurrencies, investors must still file their taxes in 2025, adhering to existing rules.

In a recent episode of The Agenda podcast, Taxbit's director of government solutions, Miles Fuller, shared insights on crypto taxes, the evolving regulatory landscape under the Trump administration, and the potential impact of Elon Musk's Department of Government Efficiency, or DOGE. Fuller, who spent 15 years as an attorney at the IRS, emphasized the importance of reporting all crypto transactions to avoid potential IRS scrutiny.

Fuller warned that intentionally leaving certain transactions off tax returns could be considered tax fraud, as the IRS is actively looking for such cases. He advised users to report all transactions, including those on decentralized exchanges and Web3 wallets, as the IRS may eventually uncover unreported activity. Failure to report all transactions could lead to questions and potential penalties from the IRS.

When asked about the future of crypto regulation, Fuller highlighted the need for a clear legislative framework that defines when cryptocurrencies and stablecoins are securities versus commodities. He believes that such a framework would provide much-needed clarity for the industry and generate the most significant returns on investment.

To learn more about Fuller's insights on crypto taxes and the regulatory landscape, listen to the full episode of The Agenda podcast on Cointelegraph's Podcasts page, Apple Podcasts, or Spotify.