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Does Coinbase Provide Information to the IRS?

Posted on Apr 15, 2025
Does Coinbase Provide Information to the IRS?

As one of the most widely used crypto exchanges in the U.S., Coinbase is required to report certain user data to the IRS. Over time, the reporting requirements for crypto transactions have grown more comprehensive, and starting in 2025, they will expand even further. Understanding what Coinbase reports to the IRS is crucial for anyone filing a crypto tax return.

Present Coinbase Tax Reporting Regulations

As of the 2025 tax year, Coinbase reports two primary types of crypto-related income:

  • Form 1099-MISC: Sent to users who earn $600 or more in staking rewards, referral bonuses, or other promotional crypto income. This form is submitted to both the user and the IRS and alerts the agency that you have taxable crypto income to declare.
  • Form 1099-B: Issued to users who participate in futures trading on Coinbase. This form details specific types of trading activities, but not standard spot trades.

While Coinbase reports certain transactions to the IRS, it does not currently submit capital gains or losses from crypto trades. Users are still required to calculate those gains using their own records and report them on their tax return.

Coinbase does not share raw transaction data with the IRS. However, it gives users access to a full Coinbase transaction history, which includes gain/loss summaries that are essential for accurate crypto tax filings.

Expert Insight: "Taxpayers should not assume that just because they didn’t receive a tax form, their activity is invisible to the IRS," says Sarah Young, a crypto tax specialist at CryptoTaxAdvisors. "The IRS uses algorithms to match blockchain transactions with user identities, especially for major platforms like Coinbase."

New Tax Forms Coming in 2025: Form 1099-DA

Beginning January 1, 2025, the IRS is rolling out stricter reporting requirements for crypto exchanges like Coinbase. This includes a new tax form:

  • Form 1099-DA: Designed to capture the gross proceeds from digital asset sales and exchanges. Coinbase will be required to issue this form in early 2026 for 2025 activity.
  • Cost Basis Disclosure: By 2026, Form 1099-DA will also include cost basis data, which will help users and the IRS calculate crypto capital gains more accurately.

These updates aim to close the gap in crypto tax compliance by making it harder to underreport digital asset activity.

Expert Insight: "Form 1099-DA will be a game changer," notes Alex Grant, CPA and blockchain compliance consultant. "It will allow both the IRS and taxpayers to clearly see the full scope of crypto trades and simplify capital gains calculations."

Understanding the Tax Implications of Coinbase Transactions: Essential Information

Whether or not you receive a 1099 form, you're still legally required to report your Coinbase transactions. Here’s what you must include:

  • Income Over $600: If you earn over $600 in rewards or staking, Coinbase will issue a 1099-MISC.
  • Crypto Conversions: Swapping one crypto for another (like BTC for ETH) must be reported—even if Coinbase doesn't submit this info directly.
  • Capital Gains and Losses: Any profit or loss from trading must be calculated and included in your crypto tax return.

The IRS compares tax reports with Coinbase data and may send notices—like Letters 6173 or CP2000—if it detects unreported crypto income.

info coinbase irs

Real-World Experience: How Users File Taxes from Coinbase

Many Coinbase users rely on crypto tax tools or professionals to navigate tax season. Here are a few examples:

  • Samantha, a part-time trader, uses CoinTracker to automatically sync her Coinbase account. "It saved me hours and helped me uncover staking rewards I had forgotten about," she says.
  • James, a long-term HODLer, downloads his raw transaction history manually from Coinbase each year. He works with a tax professional to interpret capital gains and apply loss harvesting strategies.
  • Nina, a crypto freelancer, earns in USDC through Coinbase Commerce. She tracks income monthly and reports it as self-employed income, using crypto tax software to handle conversions and historical prices.

These firsthand experiences show how important it is to stay organized and proactive. Most users recommend reviewing your Coinbase Taxes section at least quarterly—not just in April.

Reporting Your Crypto Taxes Accurately

Even if you don't receive a Coinbase tax form, you're still responsible for full reporting. Crypto taxes include more than just income:

  • Capital gains from trades
  • Income from staking or airdrops
  • Losses from sold assets

Using crypto tax software can simplify the process. Many tools, including TokenTax and CoinTracker, allow you to import your Coinbase transaction history directly via API.

Expert Tip: "Crypto tax software bridges the gap between complex transaction records and IRS-compliant filings," says Jennifer Kwon, tax attorney and advisor for fintech startups. "It’s especially useful for users with multiple wallets or frequent trades on platforms like Coinbase."

Where to Find Your Coinbase Tax Report

Coinbase gives users access to detailed tax documentation:

  1. Log in to your Coinbase account.
  2. Go to the “Taxes” section.
  3. Download your gain/loss reports, raw transaction CSVs, and any available tax forms.

For users with many trades or complex activity, working with a tax professional is recommended.

Conclusion

Coinbase reports certain types of crypto activity to the IRS—primarily through Form 1099-MISC and, beginning in 2025, Form 1099-DA. Even if you don't receive a tax form, you're still required to report your crypto income, trades, and gains. Use your Coinbase transaction history and crypto tax software to ensure you report your taxes accurately and stay compliant in the ever-changing world of digital asset regulations.

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Any questions?

If you failed to report crypto income or trades in a prior tax year, the IRS may send notices or penalties. It's recommended to consult a tax professional to file amended returns and stay compliant.

Yes, centralized exchanges like Coinbase, Kraken, and Gemini are subject to the same tax reporting requirements and must submit IRS forms based on your income and trading activity.

Crypto tax software like CoinTracker, TokenTax, or Koinly can sync with your Coinbase account and provide a complete tax report. This helps ensure you meet your tax obligations and avoid IRS scrutiny.

Even if Coinbase doesn’t issue a tax form, you must report Coinbase income, crypto sales, and capital gains/losses to the IRS. The IRS uses blockchain analytics to monitor activity and may flag underreported income.

You can download your Coinbase transaction history by logging in to your account, navigating to the Taxes section, and exporting your gain/loss reports or raw CSV files. This is essential to help report all of your taxable crypto transactions.

Self-custodied wallets like Coinbase Wallet are not directly reported to the IRS. However, if you move funds from your wallet to your Coinbase Pro or Coinbase account, or make taxable transactions, you may be responsible for reporting them on your income tax return.

No. While Coinbase reports select transactions, it doesn’t provide raw transaction data. However, it may share information about your crypto income and sales, especially those captured in 1099 forms. You are still required to report all capital gains or losses on your tax return.

If you earn $600 or more in crypto rewards or staking income in a year, Coinbase will issue a 1099-MISC. Starting in 2025, if you have reportable digital asset sales, Coinbase will also issue Form 1099-DA. Coinbase customers should watch their email and Coinbase account for tax form notifications.

Yes, Coinbase is legally required to report certain information to the IRS. It issues IRS forms like Form 1099-MISC and, starting with the 2025 tax year, will also issue Form 1099-DA. These forms help the IRS track taxable crypto income, staking rewards, and digital asset sales or exchanges made on the Coinbase exchange.

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