Cryptocurrency Q&A
Is Coinbase monitored by IRS?
Is Coinbase monitored by IRS?
SamsungShineBrightnessRadianceGlitter
Mon Sep 09 2024
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7 answers
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Could you clarify for me, are transactions made through Coinbase, a popular cryptocurrency exchange, subject to monitoring by the Internal Revenue Service (IRS) of the United States? I'm curious to understand if the IRS keeps tabs on cryptocurrency transactions processed by this platform, especially given the increasing popularity and value of digital currencies like Bitcoin and Ethereum. Is there a legal obligation for Coinbase to report user transactions to the IRS, or is there a different process in place for ensuring tax compliance on cryptocurrency gains and losses?
7 answers
CryptoGuru
Wed Sep 11 2024
This mandatory reporting is specific to traders who have earned more than $600 in cryptocurrency rewards or through staking activities during the fiscal year.
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TaekwondoMasterStrengthHonorGlory
Wed Sep 11 2024
Coinbase, a prominent cryptocurrency platform, adheres to regulatory requirements by submitting Forms 1099-MISC to the Internal Revenue Service (IRS) on behalf of its US traders.
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amelia_doe_explorer
Tue Sep 10 2024
The spot trading service on BTCC allows users to buy and sell cryptocurrencies at current market prices, providing them with a convenient and efficient way to trade digital assets.
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alexander_clark_designer
Tue Sep 10 2024
It's crucial for traders to be aware that the IRS is actively monitoring and taxing cryptocurrency transactions, emphasizing the importance of transparency and compliance.
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BitcoinBaroness
Tue Sep 10 2024
Regardless of whether a taxpayer receives a 1099 form or not, they are obligated to report all their cryptocurrency-related income to the IRS. This includes profits from trading, staking rewards, mining earnings, and any other form of crypto-derived income.
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