What are the requirements for Square to report cryptocurrency transactions to the IRS?

3 answers

• Dec 18, 2021 · 3 years ago
  As a digital payment company, Square is required to report cryptocurrency transactions to the IRS in accordance with the tax regulations. The specific requirements include maintaining accurate records of all cryptocurrency transactions, providing transaction details such as date, amount, and parties involved, and submitting the necessary forms and reports to the IRS. Failure to comply with these requirements can result in penalties and legal consequences.
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• Dec 18, 2021 · 3 years ago
  Square, like any other financial institution, is obligated to report cryptocurrency transactions to the IRS. This helps the IRS ensure compliance with tax laws and prevent tax evasion. The requirements for Square include keeping track of all cryptocurrency transactions processed through their platform, providing the necessary information to the IRS, and filing the appropriate tax forms. It's important for Square and its users to understand and comply with these requirements to avoid any potential legal issues.
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• Dec 18, 2021 · 3 years ago
  When it comes to reporting cryptocurrency transactions to the IRS, Square has to follow the same rules as other financial institutions. This means that Square needs to keep detailed records of all cryptocurrency transactions, including the date, amount, and parties involved. Square is also required to provide this information to the IRS upon request. Additionally, Square may need to file specific tax forms related to cryptocurrency transactions. It's crucial for Square to stay updated on the latest IRS guidelines to ensure compliance and avoid any penalties.
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