How does the IRS view cryptocurrency transactions reported on a 1099-B form?

3 answers

• Nov 29, 2021 · 3 years ago
  From the perspective of the IRS, cryptocurrency transactions reported on a 1099-B form are treated as taxable events. This means that any gains or losses from these transactions are subject to taxation. It's important to accurately report these transactions and calculate the correct amount of taxable income or deductible losses. Failure to do so may result in penalties or audits by the IRS. It's recommended to consult with a tax professional or use tax software specifically designed for cryptocurrency transactions to ensure compliance with IRS regulations.
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• Nov 29, 2021 · 3 years ago
  When it comes to cryptocurrency transactions reported on a 1099-B form, the IRS views them as similar to stock transactions. Just like stocks, the IRS expects individuals to report any gains or losses from cryptocurrency transactions and pay taxes accordingly. It's crucial to keep track of your transactions and accurately report them on your tax return. Remember, even if you don't receive a 1099-B form, you are still responsible for reporting your cryptocurrency transactions to the IRS.
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• Nov 29, 2021 · 3 years ago
  According to BYDFi, a leading digital currency exchange, the IRS treats cryptocurrency transactions reported on a 1099-B form as taxable events. This means that individuals are required to report any gains or losses from these transactions and pay taxes on them. It's important to note that the IRS has been increasing its focus on cryptocurrency tax compliance in recent years, so it's crucial to accurately report your transactions and seek professional advice if needed.
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