US crypto taxes will be difficult to file correctly – this is why

Bill Hughes, who is responsible for regulatory issues at Consensys, explained that starting this year, Crypto Holders will need to report transactions on a per-wallet wallet basis, making it even more complicated for users with multiple wallets.

As the IRS implements tracking procedures per wallet, crypto tax becomes more difficult to file

Trump has a different cryptography vision than his previous administration, but some guidance on tax and procedures remains. Bill Hughes, Senior Advisor and Director of Global Regulation Affairs at Consensys, recently raised concerns about the Internal Revenue Service (IRS) breaking news related to crypto tax filing.

On social media, Hughes said the IRS issued revenue procedures 2024-28 last year, establishing a strong reporting obligation for cryptocurrency owners who must declare taxes in a very detailed way.

Warning about the “new level of tax hell” of the crypto industry, he declared:

Starting in April 2026, you will need to track the cost base of assets on a wallet basis rather than universal across all wallets.

Specifically, the document establishes that taxpayers must be able to identify and maintain sufficient records to show the total number of remaining digital asset units in each wallet or account held by a taxpayer.

This procedure, implemented this year, can destroy the US crypto tax field as it allows disrupted traders to present their trades differently and could affect the validity of their tax statements.

“Many people’s taxes are simply submitted with the right chance of being close to zero,” Hughes argues, raising alarms about sanctions that could affect these procedures, and recommending users get professional advice on these tasks.

Hughes denounced the Biden administration for this kind of guidance, creating difficulties for the IRS and crypto users. Nevertheless, procedures can be updated by the current administration, as they were not created by Congressional initiatives.

“Once again, I’m grateful for Biden’s administrators and his crypto tax policy. It’s a gift that really keeps giving,” he concluded.