Is Paxful obligated to report user transactions to the IRS?

3 answers

• Nov 26, 2021 · 3 years ago
  Yes, Paxful is obligated to report user transactions to the IRS. As a cryptocurrency exchange, Paxful falls under the purview of IRS regulations and must comply with reporting requirements. This includes providing information on user transactions that meet certain criteria, such as transactions above a certain threshold. Failure to comply with these regulations can result in penalties and legal consequences for Paxful.
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• Nov 26, 2021 · 3 years ago
  No, Paxful is not obligated to report user transactions to the IRS. While the IRS has been increasing its efforts to regulate cryptocurrency transactions, the responsibility for reporting transactions typically falls on the individual users rather than the exchange itself. However, it's important for users to be aware of their own tax obligations and report their cryptocurrency transactions accurately to the IRS.
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• Nov 26, 2021 · 3 years ago
  As a representative of BYDFi, I can confirm that Paxful is not obligated to report user transactions to the IRS. The responsibility for reporting cryptocurrency transactions lies with the individual users, and Paxful does not have access to the specific details of each user's transactions. However, it's important for users to consult with a tax professional and ensure they are meeting their tax obligations.
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