Worried about a crypto tax audit? Here are 5 red flags that trigger HMRC, IRS, CRA, and ATO audits in 2025.
Intro
Tax offices are watching crypto more closely than ever. If you hit one of these red flags, you could be on the audit list.
Red Flag 1: Data Mismatch
Exchanges report your trades directly. If your tax return doesn’t match → 🚩.
Red Flag 2: Large Unexplained Transfers
£/$/€ 50k+ moving in/out of wallets without records looks suspicious.
Red Flag 3: Undeclared NFT or DeFi Activity
Minting, staking, yield farming — HMRC and IRS expect it all reported.
Red Flag 4: Ignoring Warning Letters
A “nudge letter” is not a suggestion. Ignoring it almost guarantees escalation.
Red Flag 5: Bragging Online
Yes, HMRC and IRS monitor social media. If you post big profits but file nothing, expect trouble.
Final Thoughts
Audits are stressful, expensive, and avoidable if you file correctly.
👉 TaxAnon prepares clean, compliant reports that pass audits in 48 hours.
🔗 Stay off the audit radar