Does Binance Report to the IRS?

Binance does not serve US users. This means it doesn't report directly to the IRS.

Note: Binance US operates separately from Binance (for US customers) and does report certain income to the IRS, which affects how US taxpayers should approach their crypto tax filings.

Binance US is an entirely separate platform from the primary Binance exchange. It is tailored to American users in order to meet regulatory requirements.

As such, Binance US reports specific transactions to the IRS, including income from rewards, staking, and referrals exceeding $600.

Your Binance US transactions are taxed based on how they’re classified:

• Capital Gains/Losses: Casual investors must report gains and losses from buying and selling crypto on Schedule D (Form 1040).

• Ordinary Income: Professional traders or those earning through staking or rewards should report this as ordinary income.

Binance does not report to the IRS, as it does not serve US customers. Instead, Binance US handles transactions for American users and reports certain types of income to the IRS. If you’re a US taxpayer, you must report your Binance US activity to comply with IRS regulations.

What information does Binance US send to the IRS?

For users earning over $600 on Binance US, the platform issues Form 1099-MISC, which includes:

• User Details: Name, address, and taxpayer identification number (TIN).

• Income Information: Amount earned from staking, referrals, or similar programs.

A copy of this form is also sent to the IRS, ensuring transparency. Binance US will begin to send 1099-DA as well starting with the 2025 tax year.

What is Form 1099-DA for crypto?

Form 1099-DA is the IRS information return for digital asset sales and exchanges through US brokers and exchanges like Binance.

For the 2025 tax year (forms sent in early 2026), 1099-DA will report gross proceeds from covered digital asset sales/exchanges; it will not include cost basis for 2025, so you must rely on your own records to compute gains and complete Form 8949/Schedule D. Starting with the 2026 tax year (forms sent in early 2027), 1099-DA is scheduled to include both cost basis and gross proceeds for covered transactions.

Brokers must also collect/confirm tax status (e.g., W-9/W-8). Accounts without confirmed status will face 24% federal backup withholding on proceeds (plus any applicable state withholding) and limited trading access beginning January 1, 2027.

What should I do if I received a 1099-MISC from Binance US?

If you receive a 1099-MISC from Binance US:

1. Verify for Accuracy: Review the form to ensure all details are correct.

2. Report the Income: File it on Schedule 1 (Form 1040) and calculate applicable taxes.

3. Retain Documentation: Keep a copy for your records, as the IRS will have access to this information.

Looking to calculate your crypto taxes? Try our free crypto tax calculator.

Does Binance US send a 1099-B?

Binance US does not currently issue a 1099-B, which covers the sale of securities. However, this may change due to evolving IRS regulations and the American Infrastructure Bill.

TokenTax simplifies Binance US tax reporting by integrating with the exchange, enabling you to import transactions and calculate your taxes automatically and accurately. To get started:

1. Sign Up: Create a TokenTax account.

2. Choose a Plan: Plans start at just $65/year.

3. Connect Binance US: Use the API to import your transaction data.

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