The Hidden Cost of Crypto Profits: Why Investors Struggle to File Their Taxes

Digital asset users are struggling with crypto tax filing as on-chain activity increases, coinciding with a global regulatory shift like the adoption of the Crypto-Asset Reporting Framework (CARF). In the US, the IRS treats digital assets as property, taxing realized gains from sales, swaps, or spending, and income from staking or airdrops, with the 2025 tax deadline set for April 15, 2026. The primary difficulty lies in execution: investors with high transaction volumes across numerous exchanges, wallets, and DeFi platforms find it nearly impossible to reconcile activity and calculate cost basis accurately, sometimes leading to massive overpayments, as one user reported potentially overpaying $15,000 to $30,000. Globally, 48 jurisdictions implemented CARF by January 1, 2026, requiring service providers to report extensive customer data, which critics argue erodes privacy while compliance burdens remain high for users lacking technical expertise.

(Source：BeInCrypto)