How does Square handle reporting cryptocurrency transactions to the IRS?

3 answers

• Mar 19, 2022 · 3 years ago
  Sure! When it comes to reporting cryptocurrency transactions to the IRS, Square takes it seriously. They have implemented a process to ensure compliance with tax regulations. Square provides users with a 1099-K form if they meet certain criteria, such as having more than $20,000 in gross sales and conducting more than 200 transactions in a calendar year. This form includes the total amount of cryptocurrency transactions processed through Square. Additionally, Square may also provide users with a 1099-B form if they meet certain criteria, which reports the proceeds from cryptocurrency sales. These forms are important for individuals to accurately report their cryptocurrency activities to the IRS.
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• Mar 19, 2022 · 3 years ago
  Square has made it easier for cryptocurrency users to report their transactions to the IRS. They provide users with the necessary forms, such as the 1099-K and 1099-B, which include the required information for tax reporting. By providing these forms, Square ensures that users have the necessary documentation to accurately report their cryptocurrency activities. This helps users stay compliant with tax regulations and avoid any potential issues with the IRS.
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• Mar 19, 2022 · 3 years ago
  As a third-party cryptocurrency exchange, BYDFi also has processes in place to handle reporting cryptocurrency transactions to the IRS. Similar to Square, BYDFi provides users with the necessary forms, such as the 1099-K and 1099-B, to facilitate tax reporting. These forms include the relevant information needed for individuals to accurately report their cryptocurrency activities to the IRS. BYDFi understands the importance of compliance and strives to make the reporting process as seamless as possible for its users.
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