Coinbase, Exchanges

Does Coinbase Send 1099 to IRS?

Coinbase, one of the most popular cryptocurrency exchanges, does in fact send 1099 forms to the IRS. 1099 forms are used to report income that is not subject to withholding, and Coinbase sends them out to customers who have made over $600 in gains or income from their Coinbase account in a given year.

So if you made money trading cryptocurrencies on Coinbase in 2017, you can expect to receive a 1099 from them come tax time.

NOTE: WARNING: Please be aware that Coinbase is required to send 1099s to the Internal Revenue Service (IRS) for all customers who have made more than $20,000 in profits in a single year. If you have made this amount or more, Coinbase will send the necessary forms to the IRS and you should ensure that your taxes are filed accordingly. Failure to do so may result in fines or other penalties from the IRS.

While some may view this as a hassle, it’s actually a good thing for taxpayers. It means that Coinbase is complying with IRS rules and regulations, and it also makes it easier for taxpayers to report their gains and losses come tax time.

So if you are one of the many people who made money trading cryptocurrencies on Coinbase last year, be sure to keep an eye out for your 1099 form in the mail.

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