Just wanted to send a quick reminder: Starting on January 1, 2025, which is just two weeks from now, all cryptocurrency exchanges in the US, such as Kraken and Coinbase, will be required to report your trading activities straight to the IRS using the 1099-DA form. Until now, US users have generally had to declare their crypto profits themselves, and many either didn’t report or underreported their earnings. However, starting next year, if you sell any assets through your chosen exchange, these transactions will automatically be reported to the IRS. This is crucial, especially if you hold assets with a history traceable back several years. For instance, if you purchased Bitcoin years ago for a low sum, the IRS will consider your cost basis to be zero if you can’t provide the original transaction records, resulting in significant capital gains tax due on the entire sale price. Therefore, you have approximately two weeks left to organize your financial records and optimize your crypto and USD holdings before the new year begins.
Hey guys, don’t panic!! But indeed, this requires immediate attention. Make sure to check if your exchanges offer any downloadable CSVs of your transactions, it might simplify the process. Understanding your tax obligation now can prevent hefty fees later on. Crypto taxes ain’t fun, but better safe than sorry 
This upcoming change is a significant shift for crypto investors in the US. Those who haven’t been diligent in maintaining comprehensive records of their trades need to act swiftly. While capturing data of past transactions might be challenging now, utilizing software tools that sync with exchanges could offer a semblance of transaction history. Align yourself with a tax advisor who understands the crypto landscape to avoid possible penalties. This is a pivotal moment to ensure compliance and minimize future headaches with the IRS.