Are brokers required to send 1099 forms for cryptocurrency trades?

2 answers

• Sawan MuthuharaMay 03, 2021 · 4 years ago
  Yes, brokers are required to send 1099 forms for cryptocurrency trades. The IRS treats cryptocurrency as property, and brokers are subject to the same reporting requirements as they would be for stocks or other securities. This means that if you engage in cryptocurrency trading through a broker, they should provide you with a 1099 form at the end of the year, detailing your transactions and any gains or losses.
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• Townsend CrowleyAug 13, 2020 · 5 years ago
  No, brokers are not required to send 1099 forms for cryptocurrency trades. While the IRS does consider cryptocurrency as property, there is currently no specific regulation mandating brokers to issue 1099 forms for these transactions. However, it's important to note that you are still responsible for reporting your cryptocurrency activities and any taxable events to the IRS. It's recommended to keep detailed records of your trades and consult with a tax professional to ensure compliance with tax laws.
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