What are the IRS reporting requirements for BlockFi and its users in regards to digital currencies?

3 answers

• Nov 27, 2021 · 3 years ago
  As a digital currency platform, BlockFi and its users are required to comply with IRS reporting requirements. This includes reporting any income earned from digital currencies, such as interest earned on crypto assets held in BlockFi accounts. Users should report this income on their tax returns using the appropriate forms and schedules, such as Form 1040 and Schedule 1. It's important to accurately report all digital currency income to avoid any potential penalties or audits from the IRS.
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• Nov 27, 2021 · 3 years ago
  When it comes to IRS reporting requirements for BlockFi and its users, it's crucial to understand that the IRS treats digital currencies as property for tax purposes. This means that any gains or losses from the sale or exchange of digital currencies are subject to capital gains tax. BlockFi users should keep track of their transactions and report any gains or losses on their tax returns. It's recommended to consult with a tax professional or use tax software to ensure accurate reporting and compliance with IRS regulations.
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• Nov 27, 2021 · 3 years ago
  BlockFi, like other digital currency platforms, is required to provide certain tax forms to its users. These forms include Form 1099-MISC for interest earned on crypto assets and Form 1099-B for proceeds from the sale or exchange of digital currencies. Users should receive these forms from BlockFi and use them to accurately report their income and transactions on their tax returns. It's important to keep track of these forms and include them when filing taxes to ensure compliance with IRS reporting requirements.
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