The IRS may be missing out on tens of billions of dollars a year from crypto traders not paying their taxes, according to a recent analysis of crypto trades from British bank Barclays.
The analysis estimates the tax gap from crypto trades may be as much as $50 billion per year. Barclays made its calculation by extrapolating IRS data in 2017 to estimate the current crypto tax gap represents 10% of the overall national tax gap.
However, the gap is likely much larger, Barclays says, because decentralized finance activity occurring today did not exist four years ago. Learn more.