The Internal Revenue Service has released updated guidance on cryptocurrency tax reporting ahead of the 2026 filing season, clarifying several areas that had caused confusion for taxpayers and preparers alike. The new guidance addresses the treatment of staking rewards, airdrops, and DeFi lending income with more specificity than previous bulletins.
Under the updated rules, staking rewards are taxable as ordinary income at the time they are received, regardless of whether they are immediately liquid. The IRS also confirmed that gas fees paid during transactions can be added to cost basis for capital gains calculations.
Tax professionals recommend that crypto investors use specialized software to track their on-chain activity, as the IRS has signaled it will increase enforcement actions against non-compliant filers in the coming year.
