IRS Gives Temporary Relief in Imposing Crypto Calculation Method

The IRS gave a reprieve on a new regulation governing the type of methods cryptocurrency holders can use to calculate gains and losses.

The agency on Tuesday issued temporary guidance (Notice 2025-07) allowing crypto users another year to use additional methods to identify cost-basis on virtual currency units sold or transferred. A previous IRS issuance required taxpayers to identify which units they are selling based on the new wallet-by-wallet methodology starting in 2025; the latest guidance lets taxpayers keep their own records to determine the cost-basis method used for each unit sold or transferred, until next year when ...