TaxSlayer: How to Report Cryptocurrency Taxes (Step-by-Step)
Director of Tax Strategy
Miles Brooks holds his Master's of Tax, is a Certified Public Accountant, and is the Director of Tax Strategy at CoinLedger.
Head of Tax Strategy
Jordan Bass is the Head of Tax Strategy at CoinLedger, a certified public accountant, and a tax attorney specializing in digital assets.
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Our content is designed to educate the 500,000+ crypto investors who use the CoinLedger platform. Though our articles are for informational purposes only, they are written in accordance with the latest guidelines from tax agencies around the world and reviewed by certified tax professionals before publication. Learn More
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Frequently asked questions
Where do I report crypto on Taxslayer?
You can report your cryptocurrency disposals in the ‘Investments’ section on TaxSlayer.
Can the IRS track your cryptocurrency?
Major exchanges like Coinbase report to the IRS. In addition, the IRS works with contractors to analyze public blockchain transactions and identify tax cheats.
What happens if I don’t tell the IRS about my crypto?
Tax evasion is considered a felony. The maximum penalty for tax evasion is 5 years in prison and a fine of $100,000.
Do I have to report every crypto transaction?
While there’s no need to report holding cryptocurrency or transfers between wallets you own, you should report every time you ‘earned’ or ‘disposed’ of cryptocurrency.
How do I track crypto for tax purposes?
You can track your cryptocurrency transactions manually through a spreadsheet, or automatically through crypto tax software like CoinLedger.