Kraken, a cryptocurrency exchange, has filed approximately 56 million crypto transaction forms with the US Internal Revenue Service for the 2025 tax year. Of these, around 18.5 million pertained to transactions valued at less than $1, with over half being for $10 or less. Notably, only 8.5% of the newly introduced Form 1099-DAs exceeded the $600 threshold, which triggers reporting for non-employee compensation, while 74% were for less than $50. Each form is also sent to the customer, creating a reconciliation task for the taxpayer.
The exchange estimates that the additional burden on active crypto holders is between $250 and $500 annually for dedicated tax software, excluding standard filing costs. Kraken highlights two key issues with the tax code: the lack of a de minimis exemption for crypto payments, which can result in taxable events for small purchases, and the treatment of staking rewards as ordinary income at the time of receipt. The exchange advocates for a broader, inflation-indexed exemption and the option for taxpayers to choose when staking rewards are taxed, either at receipt or at sale.