U.S. crypto investors who obtained a filing extension have until Oct. 15, 2026, to submit their 2025 federal income tax returns. The deadline approaches as taxpayers review broker statements that report crypto sales but often leave out purchase costs. Taxes owed were generally due April 15, despite the extra time to file.
The October deadline applies to most individual taxpayers who requested a valid extension before the April filing cutoff. Investors could obtain the additional six months by submitting Form 4868 or making an eligible online payment marked as an extension request.
'An extension provides extra time to file, not additional time to pay,’ the IRS said. Taxpayers who did not settle their April balances generally face interest and possible late-payment penalties, even if they submit their returns before Oct. 15.
The date does not apply automatically to everyone who owns cryptocurrency. Some taxpayers qualify for different deadlines under disaster relief, overseas filing provisions or military rules. Eligible disaster relief can also postpone payments, depending on the IRS notice covering the affected area.
Covered custodial brokers began reporting proceeds from certain digital-asset sales made during 2025 through Form 1099-DA. These statements give taxpayers and the IRS information about sales, but most forms for the first reporting year do not include cost basis.
Cost basis generally means the amount an investor paid to acquire an asset, subject to adjustments. Sale proceeds alone do not establish taxable profit. For example, buying tokens for USD 8,000 and selling them for USD 10,000 generally produces a USD 2,000 gain before applicable adjustments.
'Basis must be calculated by taxpayers before their 2025 tax return can be filed,” the IRS said. Its guidance calls for reviewing transactions across exchanges, wallets and accounts, documenting purchase costs and separating income events from sales.
Reporting duties also extend beyond converting crypto into dollars. Selling tokens, exchanging one cryptocurrency for another and spending digital assets can require gain or loss calculations. Mining, staking and payments received in crypto can create taxable income. Holding assets or buying them with dollars generally results in a 'No’ answer to the digital-asset question when no other activity occurred.
After an extension expires, the IRS generally charges a failure-to-file penalty of 5% of unpaid tax for each month or part of a month a return remains late. The charge can reach 25%.
For returns required in 2026 that arrive more than 60 days late, the minimum penalty is the smaller of USD 525 or 100% of unpaid tax. A separate late-payment penalty generally starts at 0.5% monthly and can also reach 25%. Interest compounds daily.
Taxpayers can still file when they cannot pay their full balance. The IRS offers payment plans, while submitting a return on time can prevent a filing penalty from adding to existing payment charges.
Meanwhile, broker reporting expands for certain transactions made from Jan. 1, 2026. Mandatory cost-basis reporting for qualifying sales will appear on statements issued during the 2027 filing season. Those requirements do not replace investors’ responsibility to calculate purchase costs for their 2025 returns.
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