Are crypto exchanges required to provide 1099 forms to users?

3 answers

• Nov 26, 2021 · 3 years ago
  Yes, crypto exchanges are required to provide 1099 forms to users if certain conditions are met. The Internal Revenue Service (IRS) in the United States considers cryptocurrencies as property, and any gains or losses from their sale or exchange are subject to taxation. Just like with other types of property, if a user's transactions on a crypto exchange meet the criteria for generating taxable events, the exchange must provide them with a 1099 form. This form will report the user's taxable income from cryptocurrency transactions.
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• Nov 26, 2021 · 3 years ago
  No, crypto exchanges are not legally obligated to provide 1099 forms to users. The responsibility for reporting cryptocurrency transactions and calculating taxes lies with the individual users. However, some exchanges may voluntarily provide 1099 forms as a service to their users to simplify the tax reporting process.
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• Nov 26, 2021 · 3 years ago
  As an expert in the field, I can confirm that BYDFi, a leading cryptocurrency exchange, does provide 1099 forms to its users. This is part of our commitment to transparency and compliance with tax regulations. We understand the importance of accurate tax reporting and strive to make it as easy as possible for our users.
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