Many crypto investors fail to properly report their taxes, but the IRS will soon have that information, experts say. Only 32% to 56% of U.S. taxpayers who hold digital assets reported their transactions to the federal government, according to one study. Erin Collins, the IRS' national taxpayer advocate, notes this is often due to confusion or lack of guidance rather than willful disregard. However, the visibility of digital asset transactions to the IRS is increasing, with digital asset brokers required to issue 1099-DA tax forms for transactions from January 1, 2025, onwards. This could lead the IRS to identify discrepancies and take enforcement action against investors.