Binance US, the American subsidiary of the world’s largest cryptocurrency exchange, will reportedly begin reporting to the Internal Revenue Service (IRS) later this year.
According to a report from Bloomberg, Binance US will start sharing customer data with the IRS in September 2019. The move comes after the exchange received a “John Doe Summons” from the IRS earlier this year, which demanded that Binance US turn over information on all American customers who have traded on the platform since 2017.
Binance US is not the only cryptocurrency exchange that has been Targeted by the IRS. In July, it was reported that the IRS had sent out similar summonses to several other major exchanges, including Coinbase, Kraken, and Bitstamp.
NOTE: WARNING: Binance US is not currently required to report any user data to the Internal Revenue Service (IRS). However, as the IRS implements new regulations and tax laws, this may change in the future. Therefore, it is important that users understand their local tax requirements and take appropriate measures to ensure compliance with applicable laws.
The news of Binance US’s impending compliance with the IRS is likely to come as a relief to many American customers of the exchange who have been worried about their privacy and whether or not their trading activity would be reported to the taxman.
It is important to note that, while Binance US will be sharing customer data with the IRS, it is not required to do so by law. The exchange has simply chosen to comply with the summons in order to avoid any potential legal troubles down the road.
So does Binance US reports to IRS? Yes, it does starting from September 2019 after it received a “John Doe Summons” demanding for customer data.
7 Related Question Answers Found
Binance US, the American arm of the world’s largest cryptocurrency exchange, does not currently report to the IRS. However, this could change in the future if the exchange is required to do so by US regulators. Binance US is a relatively new exchange, having only launched in September of 2019.
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.
The United States Internal Revenue Service (IRS) has not yet released any official guidance on the taxation of cryptocurrencies. However, that doesn’t mean that crypto investors in the US don’t have to pay taxes on their digital assets. In fact, the IRS has been clear that it views cryptocurrencies as property, and that means they are subject to capital gains taxes.
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.
As one of the world’s largest cryptocurrency exchanges, Binance is no stranger to providing users with the necessary tools to help them comply with tax regulations. In fact, the company has even gone as far as to partner with a tax software provider in order to offer this service. So, does Binance US give tax documents?
Binance, one of the world’s largest cryptocurrency exchanges, is reportedly facing scrutiny from the US Internal Revenue Service (IRS). According to a report from Bloomberg, the IRS is investigating whether or not Binance has been properly reporting US-based users’ trading activity and whether or not it has been paying proper taxes on that activity. The report cites “people familiar with the matter” and says that the investigation is in its early stages.
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.
