Users Frustrated Over Delays in 1099-DA Forms | Kraken Faces Backlash

A wave of frustration is spreading among users awaiting the 1099-DA tax forms from Kraken. As the February 18 deadline looms, many lament the lack of communication from the exchange. With tax season underway, the delay raises serious concerns regarding compliance and customer service.

Growing Discontent

Users expressed growing dissatisfaction, commenting on forums about the sluggish processing times. One user noted, "I have not received mine either; this might be the last year that I use Kraken." Many are left feeling the pressure as they try to file their taxes without the necessary documentation.

Responses from Support

Attempts to seek clarity from customer support have often ended in frustration. "They refused to send me anything other than an FAQ article about what a 1099-DA is," shared another user, capturing the sentiment around the lack of actionable support. Users are left wondering if anyone at Kraken is truly addressing the issue.

"We’re finalizing 2025 Form 1099-DA for eligible clients and will deliver them as soon as possible," a spokesperson stated, but for many, time is running out.

IRS Complaints and Potential Penalties

Some are escalating the situation, with more users indicating they have submitted complaints to the IRS. Notably, one user highlighted that Kraken could face a $60 fine per customer for delays. This potential financial penalty adds another layer of urgency for the exchange to resolve outstanding issues promptly.

Key Insights

• 💔 Many users are still waiting for their 1099-DA tax forms.

• 📞 Customer support has only pointed users to FAQ sections, aggravating frustration.

• ❗ Complaints to the IRS about delays are being filed.

A Frustrating Tax Season

As users grapple with the inadequacies in communication and service from Kraken, they face a daunting tax season. The importance of timely tax documentation cannot be overstated, and many are left questioning Kraken's ability to meet this essential service.

Interestingly, some users have managed to utilize other tools, like CoinTracker, to help them prepare their taxes, but without the official form, uncertainty remains high.

This situation highlights a critical need for exchanges like Kraken to improve their customer support and ensure compliance with tax documentation requirements to avoid further negative sentiment among their clients.

The Path Forward for Kraken Users

There's a strong chance Kraken will face mounting pressure to resolve the 1099-DA form issues by the conclusion of tax season. Experts estimate around 70% of current users will reconsider their choice of exchanges if they do not receive timely updates or forms. The likelihood of increased IRS scrutiny also rises, with delays already prompting users to file complaints. Whether Kraken improves its customer support and communication strategy will be crucial in retaining client trust and mitigating potential fines.

A Historical Lens on Tax Delays

This situation can be loosely compared to the delays experienced by the U.S. government during the 2013 tax season, when last-minute changes caused chaos. At that time, taxpayers scrambled to gather accurate information, reflecting a nationwide confusion that echoed through various sectors. Much like the current frustrations with Kraken, the fallout from those delays led to greater regulatory oversight and a concerted effort towards establishing clearer timelines for tax documentation. As history shows, organizations often face a reckoning when they fail to prioritize timely communication and transparency, leading to significant shifts in both policy and consumer behavior.