Coinbase, Exchanges

Does Coinbase Wallet Report to IRS?

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.

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