Does Crypto.com Report to the IRS?
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Crypto.com, 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.
Crypto.com 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, Crypto.com 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 Crypto.com issues a Form 1099, they send one copy to the user and one copy to the IRS. If you receive a 1099 from Crypto.com or any exchange, you need to report crypto on your taxes.
For the 2023 tax year, Crypto.com sent Forms 1099-K to investors who made 200 or more transactions, the volume of which equaled $20,000 or more.
It also sent Forms 1099-MISC to U.S. traders who made more than $600 from staking or rewards.
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 Crypto.com reports to the IRS
Here are answers to frequently asked questions about whether Crypto.com reports to the IRS and how taxpayers should approach this.
Does Crypto.com automatically report to the IRS?
Yes, Crypto.com automatically reports certain transaction information to the IRS. As a centralized exchange operating in the US, Crypto.com 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 Crypto.com, 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 Crypto.com?
Yes, taxes are applicable to transactions on Crypto.com. The IRS requires taxpayers to report cryptocurrency activities. Crypto.com 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. Crypto.com, 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