Crypto Tax Audit is warning US taxpayers that the tax authorities are already mapping individuals’ portfolios. The tax authorities are also reportedly preparing new reporting requirements. These measures could affect European users if they use a US platform.
The US tax authorities are reportedly starting to map crypto wallets
According to Crypto Tax Audit CEO Clinton Donnelly, who posted a warning on X, the US tax authorities have been taking the taxation of cryptocurrency gains very seriously since a “pro-crypto” president took office.
In the US, cryptocurrency users will soon be required to report all their digital asset transactions (including crypto and NFTs) if they use cryptocurrency service providers. This broad category of service providers includes exchange platforms, wallet managers, and payment processors, among others.
The new form, called 1099-DA, will be sent by brokers and exchange platforms to the tax authorities and to the individuals concerned. The form will include sales revenue, purchase price and dates, as well as transaction details (including asset types).
This model is similar to the one already in place in France and Europe, where relatively strict reporting requirements apply to cryptocurrency transactions carried out by exchange platforms.
However, these obligations will apply to all platforms with links to the United States, which means that foreign accounts will also be monitored, according to Clinton Donnelly:
These forms will come from centralized exchange platforms that are based in or have links to the United States. Examples include Coinbase, Kraken, Gemini, Uphold, and Robinhood.
Until proven otherwise, the regulations do not provide for automatic exclusion for non-residents or non-citizens. In other words, if a foreign user uses a US exchange, their transactions will be reported to the IRS, even if they are a tax resident outside the United States.
The US tax authorities will therefore have a complete map of a very significant part of the cryptocurrency market:
If you buy Bitcoin and transfer it to your Ledger, that wallet address will be reported to the IRS. […] They will know that this address is linked to you.
Anonymity increasingly disappearing
The first 1099-DA forms will be sent out in January and February 2026. Individuals who use a single platform without ever transferring their cryptocurrencies outside of it will not be required to file a tax return. But as Clinton Donnelly points out, this is only a small portion of users:
If you use multiple exchanges, move assets to and from private wallets, or interact with DeFi or on-chain activities, you will need to proactively track your cost basis.
While users in other jurisdictions – including Europe – are of course not subject to reporting requirements in the US, this still shows the weight of large platforms, which are subject to increasingly stringent oversight requirements. Between address mapping by the IRS and European MiCA requirements, users are now less anonymous than ever before.
