The U.S. Internal Revenue Service (IRS) has extended its crypto tax relief, allowing investors to use alternative methods for identifying crypto sales until the end of 2026. This decision enables crypto holders to bypass the previously mandated FIFO (first-in, first-out) method, potentially reducing their tax liabilities by reporting more recent, less appreciated coin acquisitions. The IRS's move aims to ease the compliance burden on both investors and crypto exchanges, which are required to report detailed transaction data. Starting in 2025, exchanges will only need to report gross proceeds, with cost basis data included for assets bought in 2026. The IRS also proposed making electronic submissions the default for tax reports, further streamlining the process.