The IRS has enhanced its ability to view cryptocurrency gains reported by exchanges, but it still does not have access to the cost basis information. This gap is causing difficulties for some investors who need to accurately calculate taxable gains.
According to CoinTelegraph, while the IRS can track profits from crypto transactions, the absence of cost basis data complicates the tax reporting process. Without knowing the original purchase price, it becomes challenging to determine the correct taxable amount.
For Japanese investors and traders, this development is notable as global tax authorities increase scrutiny on digital asset transactions, potentially influencing compliance standards and reporting practices in Japan’s evolving crypto market.