Kraken, a cryptocurrency exchange, has filed 56 million crypto-transaction forms with the U.S. Internal Revenue Service (IRS) for the 2025 tax year, with approximately 18.5 million of these forms covering transactions valued at less than $1 and over half for $10 or less. Only 8.5% of the new Form 1099-DAs exceeded the $600 threshold, and 74% were for less than $50, as stated in a company blog post. Each form is also sent to the customer, creating a reconciliation task for the taxpayer.
Standard tax software does not support crypto transactions, resulting in an estimated additional burden of $250-$500 per year for active crypto holders. The Tax Foundation estimates that individual returns already cost Americans $146 billion in time and expenses. Kraken identifies two key issues: the lack of a de minimis exemption for crypto payments and the taxation of staking rewards as ordinary income at receipt.
The company advocates for a broader inflation-indexed exemption and the option to tax staking rewards at sale.