Coinbase, a U.S.-based cryptocurrency exchange, made a long-feared move. The company sent out 1099-K tax forms for 2017 to the clients who were active on the platform last year.
Will I get one, too?
Yes – if you are a U.S. resident and have received cash above the required reporting minimum, which is over 200 transactions or greater than $20,000 during the year. That includes “business use” accounts and GDAX accounts from which the crypto was sold for cash exceeding the thresholds. Otherwise – most likely not.
So what do I do?
First things first – check if your form has correct numbers. If you believe that the numbers are too high, contact Coinbase with regards to the disputed transactions.
Then – contact a tax advisor and get ready to pay.
What can we learn from it
- Coinbase reports transactions to the IRS.
- It does so without necessarily notifying the clients.
- Speculating on crypto – especially if you are in the U.S. – brings not only the great returns, but also the great responsibilities.