If you’re a US-based customer of Coinbase, the short answer is yes – Coinbase will send you a 1099 form come tax time. This is because, as a US company, Coinbase is required to report any earnings you make to the IRS.
So, if you made any profits trading cryptocurrencies on Coinbase in the last tax year, you can expect to receive a 1099 from them.
Now, what exactly is a 1099 form? A 1099 form is an information return that’s used to report certain types of income other than wages, salaries, and tips. This includes income from interest, dividends, capital gains, rents, and royalties.
For cryptocurrency traders, the 1099 form will be used to report any profits made from trading digital assets on Coinbase.
So, if you’re wondering whether or not Coinbase will send you a 1099 form, the answer is yes – they are required to do so by law. And if you’re thinking about trying to avoid paying taxes on your cryptocurrency profits by not reporting them, think again – the IRS has made it clear that they are aware of the growing popularity of cryptocurrency trading, and they are cracking down on people who try to avoid paying taxes on their earnings. So it’s not worth it to risk getting caught and facing penalties – just report your profits and pay your taxes like a good citizen!.