Cryptocurrency exchanges like Coinbase have been under the microscope by the IRS since early 2018. In fact, Coinbase is currently being sued by the IRS for over $1 billion in unpaid taxes. So, does Coinbase Wallet report to IRS?
The answer is complicated. Cryptocurrency exchanges are not required to report to the IRS.
NOTE: WARNING: Coinbase Wallet does not report any information to the IRS. You are responsible for filing your own taxes and ensuring that you are compliant with all relevant laws and regulations. Coinbase encourages users to consult with a qualified tax professional for tax advice.
However, if you use Coinbase Wallet to store or trade cryptocurrency, your transactions are considered taxable events. This means that you may owe taxes on your gains, even if you don’t cash out your cryptocurrency.
If you’re not sure whether or not you owe taxes on your Coinbase Wallet activities, we recommend speaking with a tax professional. They can help you determine if you have a tax liability and, if so, how much you owe.
5 Related Question Answers Found
As cryptocurrencies become more popular and their use more widespread, the question of whether or not Coinbase Pro reports to the IRS is an important one. While the short answer is “no,” there is a bit more to it than that. Coinbase Pro is a digital currency exchange that allows users to buy and sell cryptocurrencies.
It is no secret that the IRS is cracking down on cryptocurrency holders who have not reported their gains from digital asset trading. In fact, the agency has already sent out thousands of warning letters to taxpayers who may have failed to report their crypto-related income. And, Coinbase, one of the most popular cryptocurrency exchanges, has been cooperating with the IRS since 2017.
Coinbase, one of the most popular cryptocurrency exchanges, does in fact report basis information to the IRS. This is important because it allows the IRS to track and tax cryptocurrency gains and losses. Coinbase reports basis information to the IRS using Form 8949.
As the leading platform for buying and selling cryptocurrencies, Coinbase is required by law to send tax forms to the IRS for customers who have made over $20,000 in gains from their crypto transactions. This process, known as “information reporting,” is how the IRS knows which taxpayers owe taxes on their cryptocurrency gains. While Coinbase is not required to withhold taxes from its customers, it does provide them with the option to do so.
If you’re a Coinbase user, you may be wondering if the platform provides tax statements. The answer is yes, Coinbase does provide tax statements. However, the extent to which these statements are helpful may vary depending on your individual tax situation.
