Crypto Tax Deadline Looms for Extension Filers in the US

U.S. crypto investors who requested a filing extension have until October 15, 2026, to submit their 2025 federal income tax returns.

While the deadline for filing was April 15, this extra time is for submitting the returns, not paying any taxes owed.

Those who did not pay their balances by the original deadline may face interest and late-payment penalties, even if they submit their returns on time.

The IRS issues a Form 1099-DA to custodial brokers, which reports proceeds from certain digital-asset sales made during 2025.

However, these statements often do not include cost basis, which is the amount an investor paid to acquire an asset, subject to adjustments.

Taxpayers must calculate their own cost basis, reviewing transactions across exchanges, wallets, and accounts, and documenting purchase costs.

Converting crypto into dollars, selling tokens, exchanging one cryptocurrency for another, and spending digital assets can all require gain or loss calculations.

The IRS charges a failure-to-file penalty of 5% of unpaid tax for each month or part of a month a return remains late, which can reach 25%.

Taxpayers can still file when they cannot pay their full balance and the IRS offers payment plans.