Crypto Investors Face Deadline to File 2025 Federal Returns

The October 15th deadline is looming for U.S. crypto investors who received a filing extension for their 2025 federal returns. While the deadline is for filing, taxes owed for 2025 were still generally due by April 15. This means that interest and possible late-payment penalties have been running on unpaid balances since the original deadline.

The IRS explains that taxpayers who requested an extension by the April 15 deadline received additional time to file through October 15, but the extension did not postpone payment of taxes due. For crypto investors, the deadline arrives during the first federal filing season in which many custodial brokers have reported 2025 digital-asset sales on Form 1099-DA. However, most 2025 statements do not provide the investor's cost basis, leaving taxpayers responsible for calculating what they originally paid for the assets before determining gains or losses.

Crypto sales, swaps, staking rewards, and payments can trigger reporting obligations on federal tax returns. The IRS warns that taxpayers must report taxable income, gains, and losses even when they never receive a Form 1099 or other information return. The new Form 1099-DA gives the IRS more transaction data, but most 2025 statements do not provide the investor's cost basis.

For returns required to be filed in 2026 and filed more than 60 days late, the minimum penalty is the smaller of $525 or 100% of the unpaid tax. Taxpayers who cannot pay the full amount are still able to file their return and use payment-plan options. Filing by the deadline can prevent a failure-to-file charge from being added to an existing unpaid balance.

The new crypto rules will expand basis reporting after 2025. Broker reporting becomes more detailed for transactions made during 2026. Mandatory basis reporting begins for certain covered transactions effected on or after January 1, 2026. Digital assets bought before 2026 or transferred into a broker from another location can remain non-covered assets for reporting purposes, leaving investors responsible for records the selling broker does not possess.