Does Coinbase report to the IRS?
In short, yes. Coinbase is required to report information to the IRS on US customers who have made transactions of $20,000 or more in a single year. The specific information that Coinbase must provide includes the customer's name, address, taxpayer identification number, date of birth, and transaction records.
Coinbase and the IRS: What You Need to Know
Since Coinbase is a digital asset exchange, it falls under the purview of the IRS. The IRS has stated that digital assets such as Coinbase’s digital coins and tokens are considered property for tax purposes. This means that you must pay taxes on any gains you make when selling your digital assets on Coinbase.
If you’re an individual who owns digital assets, you’ll need to declare them on your tax return. If you’re a corporation, you will need to comply with the IRS’s reporting requirements.
If you have any questions about how to report your digital assets on your tax return, please contact your accountant or tax preparer.
How Coinbase Reports to the IRS
Coinbase complies with the IRS reporting requirements for virtual currency transactions. The company provides a Form 1099-K to its customers for each taxable transaction that exceeds $600 in value. Coinbase also sends a Form 1099-B to the IRS for each taxable transaction that falls below $600 in value.
What Does Coinbase Report to the IRS?
Coinbase is required to report income and expenses to the IRS. The company must report income from transactions and sales of cryptocurrencies, as well as any other taxable events. Coinbase also reports its employee compensation and benefits, as well as other business-related transactions.
Coinbase and Your Taxes: What You Need to Know
When you sell or trade bitcoin, you may be subject to capital gains or losses. In order to calculate your taxes, you will need to know the fair market value of your bitcoin at the time of sale or trade. You will also need to know your annual income and filing status.
Capital Gains Tax
If you sell or trade bitcoin and your bitcoin has increased in value, you will have to pay capital gains tax on the difference between the fair market value of your bitcoin at the time of sale or trade and the amount you paid for it. If your bitcoin has decreased in value, you will have to pay capital gains tax on the difference between the fair market value of your bitcoin at the time of sale or trade and the amount you paid for it.
If you are a US citizen, you will have to pay capital gains tax on all of your bitcoin transactions, regardless of the amount.
If you are a resident of Canada, you will have to pay capital gains tax only on the portion of your bitcoin transactions that exceed C$10,000 ($8,000 USD).
If you are a resident of any other country, you will have to pay capital gains tax on all of your bitcoin transactions, regardless of the amount.
You will have to report your capital gains and losses on your federal income tax return.
Annual Income Tax
If you are a US citizen, you will also have to pay annual income tax on any capital gains that you make from bitcoin transactions.
If you are a resident of Canada, you will only have to pay annual income tax on the portion of your bitcoin transactions that exceed C$100,000 ($80,000 USD).
If you are a resident of any other country, you will only have to pay annual income tax on the portion of your bitcoin transactions that exceed your local currency’s equivalent of C$100,000 ($80,000 USD).
How to Handle Coinbase Reporting to the IRS
If you are a Coinbase user, there are a few things you can do to help ensure that your Coinbase activity is reported to the IRS in a correct and timely manner.
First, be sure to keep accurate records of all of your Coinbase transactions. This will help you track your transactions and ensure that they are reported to the IRS in a timely manner.
Next, make sure that you have filed your taxes using the correct tax filing status. If you are a U.S. citizen, you should file using your tax residency status. If you are not a U.S. citizen, you should file using your tax residency status and your tax filing status as a U.S. citizen.
Finally, make sure that you include all of your Coinbase transactions in your tax filings. This will ensure that the IRS receives all of the information it needs to properly assess and collect your taxes.
Reporting Coinbase Transactions to the IRS
If you are a Coinbase customer and have transactions that are more than $10,000 in value, you will need to report those transactions to the IRS. Coinbase will provide you with a form 1099-K, which you will need to submit to the IRS.
What Coinbase Reports to the IRS
According to Coinbase's 2018 Form 990, the company reported $1.7 billion in revenue and $0.6 billion in net income. Coinbase also disclosed $0.5 billion in cash and equivalents on the form.
