How does Coinbase generate a 1099-K for its users?

1 answers

• Nov 25, 2021 · 3 years ago
  Generating a 1099-K for its users is a standard practice in the cryptocurrency industry. Coinbase, like other exchanges, is obligated to report certain user transactions to the IRS. The 1099-K form provides a summary of the users' cryptocurrency transactions, including the total transaction volume. It's important for users to understand that receiving a 1099-K does not necessarily mean they owe taxes on the reported transactions. The form is primarily used by the IRS to track and monitor cryptocurrency activities. Users should consult with a tax professional to determine their specific tax obligations based on the information provided in the 1099-K form.
  662331