Bitcoin users should not assume that broker tax forms will capture all of their reporting obligations, according to Rob Massey, a Deloitte adviser who has worked on cryptocurrency tax issues since 2012. In an explanation published by Bitcoin Magazine, Massey discussed how existing U.S. tax principles apply when digital assets are traded, spent, moved between wallets or used across borders.
Spending Bitcoin Can Create a Tax Reporting Event
The central issue is that the U.S. tax system remains based on self-assessment. Taxpayers are responsible for identifying and reporting relevant transactions rather than relying solely on information supplied by a broker or other intermediary.
That matters when Bitcoin is used as money. Paying a plumber or another service provider with Bitcoin can create a taxable realization event because the asset is being exchanged for goods or services. The same principle applies to barter transactions generally: the taxpayer may need to account for the difference between the Bitcoin’s relevant cost basis and its value when spent.
Massey also distinguished between wallet activity that may be taxable and transfers that are not necessarily realization events. Moving coins between wallets controlled by the same taxpayer does not automatically mean an asset has been sold, although maintaining records is important. Determining the tax result can become more difficult after years of transfers, particularly when the owner cannot readily establish cost basis.
Why Broker Forms Are Not the Whole Record
Broker reporting, including Form 1099 information, can help document some transactions, but Massey said it will not provide a complete picture for Bitcoin users. Digital assets may move through self-custodied wallets, decentralized services or other arrangements that are outside a broker’s records.
He also emphasized that no de minimis exemption has passed. In practical terms, taxpayers should not assume that small transactions are automatically excluded from reporting simply because the amounts involved are limited. Massey’s discussion covered examples ranging from everyday spending to larger questions raised by businesses, including exchange-traded funds, leverage and Bitcoin lending.
The discussion also addressed international activity. Bitcoin transactions can raise questions involving withholding, the absence of specific tax treaties for these assets and rules such as Subpart F. Multinational companies may compare Bitcoin with stablecoins when assessing payment corridors, but the relevant tax and reporting treatment still depends on the transaction and the parties involved.
Guidance Taxpayers Want From Treasury
Rather than calling for repeal of the tax rules, the main policy request described by Massey was additional guidance. Areas identified for clarification included lending, the character of income or gains, and how taxpayers should determine basis.
For people with older or incomplete records, Massey’s message was to build a complete transaction history and seek professional help from an attorney or certified public accountant where necessary. The source material also highlighted the importance of addressing previously unreported activity rather than assuming that blockchain visibility removes the need for a coherent tax narrative.
Market Picture
Moneyiar data recorded Bitcoin at $80,430.51 at 22:39 on October 25, 2026, with a 24-hour decline of 0.08% and a seven-day decline of 1.32%. Plasma was $0.073823 at 22:38, up 0.12% over 24 hours and down 2.89% over seven days. Compound stood at $21.13, down 10.42% in 24 hours and up 0.30% over seven days, while Decimal was $0.458443, unchanged over 24 hours and up 4.16% over seven days. These figures are Moneyiar market data at the stated times.
