How does the IRS track cryptocurrency transactions reported on 1099-B forms?

3 answers

• Nov 29, 2021 · 3 years ago
  The IRS tracks cryptocurrency transactions reported on 1099-B forms through a combination of technology and cooperation with cryptocurrency exchanges. When individuals or businesses sell or exchange cryptocurrencies, the exchanges are required to report these transactions to the IRS using the 1099-B form. The IRS then cross-references the reported transactions with the information provided by taxpayers on their tax returns. This helps the IRS ensure accurate reporting and detect any discrepancies or potential tax evasion in the crypto space.
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• Nov 29, 2021 · 3 years ago
  Tracking cryptocurrency transactions reported on 1099-B forms is a priority for the IRS in order to prevent tax evasion. The IRS has developed advanced data analytics tools to analyze the information provided by cryptocurrency exchanges. These tools help the IRS identify patterns and detect any suspicious or unreported transactions. Additionally, the IRS has been actively working with international tax authorities to exchange information and combat cross-border tax evasion in the crypto space.
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• Nov 29, 2021 · 3 years ago
  As a leading cryptocurrency exchange, BYDFi takes the reporting requirements seriously and ensures compliance with the IRS regulations. BYDFi cooperates with the IRS by providing accurate and timely information on cryptocurrency transactions reported on 1099-B forms. This collaboration helps the IRS track and verify the reported transactions, ensuring transparency and fairness in the taxation of cryptocurrencies.
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