Cryptocurrency Q&A
Which crypto wallet does not report to the IRS?
Which crypto wallet does not report to the IRS?
HallyuHeroine
Thu Sep 05 2024
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5 answers
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I'm curious, as a cryptocurrency investor, which crypto wallet can I use that does not report my transactions to the IRS? I understand the importance of tax compliance, but I'm looking for a wallet that prioritizes privacy and doesn't automatically disclose my financial activity to tax authorities. Can you recommend a wallet that meets these criteria, and if so, what are the potential drawbacks or considerations I should be aware of when using it?
5 answers
Eleonora
Sat Sep 07 2024
Among these are decentralized crypto exchanges (DEXs), which operate without a central authority or intermediary. Examples of popular DEXs include Uniswap and SushiSwap, which facilitate peer-to-peer (P2P) trading of cryptocurrencies directly between users.
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Tommaso
Sat Sep 07 2024
Another category of exchanges that may not report user transactions to the IRS are those operating outside the United States. Since these platforms are not subject to US tax laws, they may not have a reporting obligation to the IRS regarding their users' transactions.
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DongdaemunTrend
Sat Sep 07 2024
It's important to note that while these exchanges may not be required to report transactions to the IRS, it doesn't mean that users are exempt from paying taxes on their crypto gains. Individuals are still responsible for reporting their crypto transactions and paying taxes accordingly.
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Tommaso
Sat Sep 07 2024
Cryptocurrency exchanges operate under varying regulations and policies when it comes to reporting user transactions to tax authorities. Notably, there are several types of exchanges that do not disclose this information to the Internal Revenue Service (IRS) in the United States.
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ThunderBreezeHarmony
Sat Sep 07 2024
Additionally, some P2P platforms also operate without reporting user transactions to the IRS. These platforms allow users to buy and sell cryptocurrencies directly with each other, without the involvement of a centralized exchange.
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