Does Report to the IRS?

Hannah Foltz
ByHannah FoltzReviewed byZac McClure, MBAUpdated on May 2, 2023 · 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?”

To stay up to date on the latest, follow TokenTax on Twitter @tokentax.

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Last reviewed by Zac McClure,MBA on May 2, 2023 · Sources

Hannah Foltz
Hannah FoltzDirector, Brand and Marketing at TokenTax
Hannah holds an MA in technical communication and joined TokenTax after working in B2B brand strategy. Published in Forbes, she serves as the editorial director of our thought leadership program.
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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