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Is cash app 1099 reporting required for all types of digital currency transactions?

avatarterrisDec 16, 2021 · 3 years ago3 answers

I heard that Cash App requires 1099 reporting for digital currency transactions. Does this apply to all types of digital currency transactions or only specific ones? Can you provide more information on the reporting requirements for digital currency transactions on Cash App?

Is cash app 1099 reporting required for all types of digital currency transactions?

3 answers

  • avatarDec 16, 2021 · 3 years ago
    Yes, Cash App does require 1099 reporting for certain types of digital currency transactions. The reporting requirement applies to transactions that meet or exceed the IRS threshold. Cash App will issue a 1099-K form to users who have received more than $20,000 in gross payments and conducted more than 200 transactions in a calendar year. It's important to note that not all digital currency transactions on Cash App are subject to 1099 reporting. Only transactions that meet the IRS criteria will be reported.
  • avatarDec 16, 2021 · 3 years ago
    Absolutely! Cash App follows the IRS guidelines when it comes to reporting digital currency transactions. If you meet the threshold of $20,000 in gross payments and more than 200 transactions in a calendar year, you can expect to receive a 1099-K form from Cash App. However, if your transactions fall below these thresholds, you won't be subject to 1099 reporting. It's always a good idea to consult with a tax professional to ensure compliance with reporting requirements.
  • avatarDec 16, 2021 · 3 years ago
    As an expert in the digital currency industry, I can confirm that Cash App does require 1099 reporting for certain types of digital currency transactions. However, it's important to note that this requirement is not unique to Cash App. Many other digital currency platforms and exchanges have similar reporting obligations. The purpose of 1099 reporting is to ensure transparency and compliance with tax regulations. If you engage in digital currency transactions that meet the IRS criteria, you should expect to receive a 1099-K form from Cash App or other platforms.