Why this work matters
She lost $110,000 to a scam. Then the IRS sent a bill.
A mother in North Carolina was drawn into a fake online task platform, drained her 401(k) chasing the deposits it demanded, and lost more than $110,000 to criminals.
Under current law, the money she was tricked into withdrawing is still taxable income — she owed ordinary income tax on it, plus a 10% early-withdrawal penalty, on savings the scammers had already taken. We study cases like hers so the rules can be fixed.
Source: From our founder's practice
Fair, workable tax rules for digital assets
The federal tax system was written decades before the first bitcoin transaction, and taxpayers are living with the mismatch. Reporting rules built for stockbrokers now apply to blockchain networks, fraud victims owe tax on money that was stolen from them, and millions of Americans who want to get compliant have no clear path to do it.
Digital Asset Tax Action studies these problems and educates taxpayers, practitioners, and policymakers. Its affiliate, Digital Asset Tax Advocacy, takes the fight directly to Congress.
A record of engagement
Oral testimony at the IRS and Treasury hearing
On July 8, 2026, our founder was one of only two witnesses to give oral testimony at the public hearing on the proposed Form 1099-DA electronic-furnishing regulations, alongside Coinbase — warning that proceeds reported without cost basis are producing six- and seven-figure deficiency notices against ordinary taxpayers.
A formal comment in the rulemaking record
We filed a public comment on IRS REG-105064-25, part of the official regulatory record for how digital asset transactions will be reported. Our research explains what the rules do and where they go wrong.
Read our researchMeetings with offices in both parties
Our founder has met with congressional offices across both chambers and both parties, along with Treasury and the IRS, so that lawmakers hear how these rules affect real taxpayers. Our stated cumulative record is more than fifty such meetings.
Two organizations, one mission
Digital Asset Tax Action
A nonprofit research and education organization. It publishes plain-language guides, produces original research, and participates in the IRS regulatory process so that the rules governing digital assets are informed by how people actually use them.
Explore the education libraryDigital Asset Tax Advocacy
Its affiliated social welfare organization. It advocates for specific legislation, meets with lawmakers, and gives taxpayers a voice in the policy debates that affect them. Where our organization educates, our affiliate advocates.
Visit the advocacy sectionThe issues
Form 1099-DA broker reporting
New broker reporting rules reach millions of transactions, and a timing gap in the rollout can make gains look larger than they are. Our guide explains what the forms mean and what records to keep.
Education & ResearchHow crypto is actually taxed
Property treatment, taxable events, and the questions we hear most often, answered in plain language.
Advocacy · our affiliateA path back to compliance
Our affiliate urges Congress to direct the IRS to create a voluntary disclosure program for digital assets, so taxpayers who fell behind can come forward, pay what they owe, and move on.
Advocacy · our affiliateTax relief for fraud victims
Scam victims should not owe income tax on money criminals stole from them. Our affiliate supports the Tax Relief for Fraud Victims Act and is working to see it passed.
Stay informed
Get updates on new research, IRS guidance, and the rules we are tracking. One email when something matters, and nothing more.