Binance, Exchanges

Do Binance US Report to IRS?

Binance, one of the world’s largest cryptocurrency exchanges, does not currently report to the IRS. However, this could change in the future as the IRS has been increasing its efforts to clamp down on cryptocurrency tax evasion.

Binance is not currently registered with the IRS as a Money Service Business, so it is not required to report transactions to the agency. However, this could change if Binance US registers with the IRS as a MSB.

The IRS has been increasing its scrutiny of cryptocurrency investors in recent years. In 2019, the agency sent out over 10,000 letters to taxpayers who had potentially failed to report their cryptocurrency gains on their taxes.

The letters warned that taxpayers could face fines and penalties if they did not amend their returns.

NOTE: WARNING: Binance US does not report to the IRS. It is the responsibility of the user to accurately report their gains or losses on their taxes, as applicable. Failure to do so may result in penalties and fines by the IRS.

Binance US is a subsidiary of Binance and it is possible that it will register with the IRS as a MSB in the future. If it does, then it will be required to report transactions to the agency.

This would mean that US taxpayers who use Binance US would have to report their gains and losses on their taxes.

The bottom line is that we don’t know if Binance US will have to report to the IRS in the future. However, it is possible that it will have to do so if it registers as a MSB.

US taxpayers should be aware that they may need to report their gains and losses from Binance US on their taxes.

2 Related Question Answers Found

Will Binance US Report to IRS?

As the Internal Revenue Service (IRS) continues to ramp up its enforcement of cryptocurrency regulations, many industry participants are wondering if popular exchanges like Binance will begin reporting users’ data to the tax agency. While Binance has not yet announced any plans to do so, it is certainly within the realm of possibility, particularly given the IRS’s recent success in obtaining user data from other exchanges. The IRS’s interest in cryptocurrency is largely driven by the fact that many people are using it to avoid paying taxes.

Does Binance US Issue Tax Documents?

Binance US is a digital asset exchange offering cryptocurrency trading services to users in the United States. The exchange is operated by Binance Ltd., a company based in Malta. Binance US is a separate entity from Binance Ltd., and is not subject to the same regulatory oversight.
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