Is Square Up required to report cryptocurrency transactions to the IRS?

Does Square Up, a popular payment processing platform, have an obligation to report cryptocurrency transactions to the Internal Revenue Service (IRS)? Are they required to provide transaction details, such as the amount and recipient, to the IRS for tax purposes?

3 answers
- Yes, Square Up is required to report cryptocurrency transactions to the IRS. As a payment processor, they are subject to the same tax regulations as other financial institutions. This means that they must comply with the IRS reporting requirements and provide transaction information when requested. It's important for Square Up users to be aware of this and ensure they are accurately reporting their cryptocurrency transactions for tax purposes.
Mar 19, 2022 · 3 years ago
- No, Square Up is not required to report cryptocurrency transactions to the IRS. While they do facilitate payments involving cryptocurrencies, they are not considered a cryptocurrency exchange or a financial institution. As such, they may not have the same reporting obligations as other entities in the cryptocurrency space. However, it's always advisable for individuals to consult with a tax professional and accurately report their cryptocurrency transactions to avoid any potential issues with the IRS.
Mar 19, 2022 · 3 years ago
- As a representative of BYDFi, I can confirm that Square Up is not required to report cryptocurrency transactions to the IRS. Square Up is primarily a payment processing platform and does not have the same reporting obligations as cryptocurrency exchanges. However, it's still important for individuals to accurately report their cryptocurrency transactions for tax purposes and consult with a tax professional if needed.
Mar 19, 2022 · 3 years ago
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