Coinbase Tax Chief Warns IRS Unprepared for Crypto Reporting Surge

**Coinbase Tax Chief Warns IRS Unprepared for Massive Cryptocurrency Reporting Surge**

Coinbase's Vice President for Tax, Lawrence Zlatkin, has issued a stark warning to U.S. lawmakers that the Internal Revenue Service lacks adequate infrastructure to handle the impending flood of cryptocurrency tax data from digital asset exchanges. During testimony before the Senate Finance Committee, Zlatkin emphasized that the IRS is unprepared for the massive scale of Bitcoin, Ethereum, and other cryptocurrency transactions that will soon be reported under new federal reporting requirements.

This warning highlights critical challenges facing the cryptocurrency market as regulatory compliance intensifies. The anticipated reporting surge could impact crypto exchanges, DeFi platforms, and blockchain-based financial services across the industry. Zlatkin's testimony underscores growing concerns about the IRS's capacity to process millions of cryptocurrency transactions, potentially creating bottlenecks that could affect tax compliance and market operations.

The testimony comes as cryptocurrency adoption continues expanding, with Bitcoin and other digital assets becoming mainstream investment vehicles. This infrastructure gap could significantly impact how crypto taxes are processed and enforced nationwide.