Does Report to the IRS?

Arthur Teller
ByArthur Teller, CPAReviewed byZac McClure, MBAUpdated on December 20, 2023 · minute read
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  •, being a centralized exchange based in the US, is legally required to report certain transaction information to the IRS. This reporting is done through Form 1099, and users receiving this form must report their crypto activities on their taxes.

  • issued Forms 1099-K to investors with 200 or more transactions totaling $20,000 or more for the 2023 tax year. Additionally, Forms 1099-MISC were sent to U.S. traders earning over $600 from staking or rewards. The Biden administration has lowered the 1099-K threshold to trade volumes over $600 starting in 2022.

Yes, does report certain transaction information to the IRS. Because it is a centralized exchange based in the US, it is required by law to report users’ activity with a Form 1099

When an exchange like issues a Form 1099, they send one copy to the user and one copy to the IRS. If you receive a 1099 from or any exchange, you need to report crypto on your taxes.

For the 2023 tax year, sent Forms 1099-K to investors who made 200 or more transactions, the volume of which equaled $20,000 or more.

Example of the IRS Form 1099-K

It also sent Forms 1099-MISC to U.S. traders who made more than $600 from staking or rewards

Form 1099-MISC

The Biden administration is working on strengthening crypto exchange’s reporting requirements; beginning in 2022, the 1099-K threshold was lowered to trade volumes over $600 (before it was $20,000). Some states had already lowered this threshold. [1]

For more detailed information about crypto 1099s, check out our blog “What is a Crypto 1099?”

Frequently asked questions about reports to the IRS

Here are answers to frequently asked questions about whether reports to the IRS and how taxpayers should approach this.

Does automatically report to the IRS?

Yes, automatically reports certain transaction information to the IRS. As a centralized exchange operating in the US, is legally obligated to provide users' activity details through Form 1099, which is then submitted to both the user and the IRS.

Does the IRS track crypto?

Yes, the IRS actively tracks cryptocurrency transactions. Crypto transactions are subject to reporting requirements, and the IRS receives information from exchanges, including, through Form 1099. This ensures transparency and compliance with tax regulations. Consult a crypto tax professional for further clarity and advice concerning your specific tax situation.

Do I have to pay taxes on

Yes, taxes are applicable to transactions on The IRS requires taxpayers to report cryptocurrency activities. issues Form 1099, which requires them to report their crypto-related income and transactions when filing taxes.

Do I have to report crypto to the IRS?

US taxpayers are obligated to report cryptocurrency transactions to the IRS., like other exchanges, assists in this process by providing users with Form 1099, which must be included in tax filings. It is essential to comply with IRS regulations to avoid any legal complications related to cryptocurrency transactions.

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Last reviewed by Zac McClure,MBA on December 20, 2023 · Sources

Arthur Teller
Arthur TellerCOO (Former) at TokenTax
Arthur came to TokenTax after 12 years at KPMG. A specialist in partnership taxation and enterprise tax software, he is a licensed CPA in both California and Illinois and a member of the AICPA.
Zac McClure
Reviewed byZac McClureCo-Founder & CEO at TokenTax
Zac co-founded TokenTax after his career in international finance and accounting at JPMorgan, Imprint Capital and Bain. He has worked in more than half-dozen countries and received his MBA from the UPenn Wharton School.

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