Doing crypto taxes this year is going to suck.

For the past decade, the IRS has treated cryptocurrency as property rather than currency, treating every sale and exchange as a taxable event. However, despite blockchains being public ledgers, tax compliance rates have always been low. The gap between what the IRS expects and what crypto users actually pay in taxes has been growing for years.

That gap is about to close significantly.

We are entering the crypto tax ‘enforcement era’

The shift didn’t happen overnight. In 2021, the IRS launched Operation Hidden Treasure to target deliberate concealment of crypto income. By 2022, it had hired agents with specialized blockchain expertise and secured court orders for data from major exchanges,…