Kraken filed 56 million crypto tax forms for 2025. One-third were below $1

Cryptocurrency exchange Kraken reported filing 56 million crypto tax forms with the IRS for the 2025 tax year. A significant portion, approximately 18.5 million forms, were for transactions valued under $1, and over half were for $10 or less. Only 8.5% of these Form 1099-DAs exceeded the $600 threshold for non-employee compensation, with 74% below $50. Kraken argues that the lack of a de minimis exemption for crypto payments and staking rewards, coupled with the requirement to report these as income at receipt, creates an excessive reporting burden for taxpayers. This burden is compounded by the fact that standard tax software does not adequately handle crypto transactions, leading to estimated annual costs of $250-$500 for active crypto holders on top of filing fees. Kraken also noted that brokers provide gross proceeds without cost basis, causing confusion for clients. The exchange is advocating for a broader, inflation-indexed de minimis exemption and for taxpayers to have the option to elect when staking rewards are taxed, either at receipt or at sale.

(Source：CoinDesk)