IRS Ramping Up Crypto Tax Reporting and Enforcement in 2023

You'll need to report to the IRS if you received or sold crypto in 2023. This includes cryptocurrencies, stablecoins, and NFTs.

Crypto is treated like property for tax purposes. If you sold crypto at a gain, you'll owe taxes based on how long you held it.

You can use crypto losses to offset other income, up to $3,000 (or $1,500 if married filing separately).

Wash sale rules don't apply to crypto yet - you can sell at a loss and buy back within 30 days to claim the loss.

The IRS is piloting a free e-file program for simple tax returns in 12 states, but it has funding and lobbying obstacles to overcome.