Does Report to the IRS?

Hannah Foltz
ByHannah FoltzUpdated on May 20, 2022 · minute read

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Does report to the IRS?  Yes, does report certain transaction information to the IRS. Because it is a centralized exchange based in the U.S., 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 2021 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?”

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Last reviewed by Hannah Foltz, TokenTax on May 20, 2022 · Sources

Hannah Foltz
Hannah FoltzBrand Strategy & Insights at TokenTax
Hannah, who holds an MA in technical communication, joined TokenTax after working in B2B brand strategy.

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