---
title: Crypto Tax Debt: What It Means and What to Do | TaxTruce
url: https://taxtruce.com/health/crypto-taxes
updated: 2026-10-29
---

# Owe taxes on crypto?

Crypto sales are reported now. Here's what to know.

Updated October 8, 20262 sources[Fact checked](/editorial-standards)

The short answer

## What should I do about crypto tax debt?

Selling or trading crypto can create tax. Starting with 2025 sales, brokers report digital asset sales on the new Form 1099-DA, so the IRS sees more of them.

**Brokers must report digital asset sales on Form 1099-DA for transactions on or after Jan 1, 2025.**[Source: IRS: Digital assets](https://www.irs.gov/filing/digital-assets)

For tax, a digital asset is any value recorded on a blockchain or similar tech. Cryptocurrency is one kind.

Your basis is usually what you paid in US dollars. Gain or loss is the difference when you sell or trade.

If the IRS sees income that doesn't match your return, it may send a CP2000.

## Key facts

* Every Form 1099-DA
* What you paid for each coin (your basis)
* Old years with trades you didn't report
* Any CP2000 notice
* Your total balance due

## Options that may help

**Amend old returns**

Fix years with missing sales using Form 1040-X.

**Payment plan**

Spread the bill out if you can't pay.

**Get a pro**

Crypto basis can be complex. A CPA or enrolled agent can help.

Results depend on your situation. Not every case qualifies.

## Common questions

Is Form 1099-DA new?

Yes. It starts with transactions on or after Jan 1, 2025, reported in 2026.

Source: [IRS: Digital assets](https://www.irs.gov/filing/digital-assets)

## Sources

1. [IRS: Digital assets](https://www.irs.gov/filing/digital-assets)
2. [IRS: Understanding your CP2000 notice](https://www.irs.gov/individuals/understanding-your-cp2000-notice)

General information, not tax or legal advice. You can contact the IRS yourself for free at [irs.gov](https://www.irs.gov).

Run the numbers with our [free tax tools](/tools), like the penalty and payment plan math.