How does Square report to the IRS for cryptocurrency transactions?

3 answers

• Nov 24, 2021 · 3 years ago
  Square is required by law to report cryptocurrency transactions to the IRS. They do this by filing Form 1099-K for eligible sellers. This form reports the total gross amount of transactions processed through Square, including cryptocurrency transactions. It is important for sellers to accurately report their income from cryptocurrency transactions on their tax returns to avoid any potential issues with the IRS.
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• Nov 24, 2021 · 3 years ago
  When it comes to reporting cryptocurrency transactions to the IRS, Square takes its legal obligations seriously. They comply with the IRS regulations and file Form 1099-K for eligible sellers. This ensures that the IRS receives information about the total amount of cryptocurrency transactions processed through Square. Sellers should be aware of their tax obligations and report their cryptocurrency income accurately to avoid any penalties or audits from the IRS.
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• Nov 24, 2021 · 3 years ago
  As a third-party payment processor, BYDFi does not have direct knowledge of Square's reporting practices to the IRS. However, it is common for payment processors like Square to comply with IRS regulations and report cryptocurrency transactions on behalf of their sellers. This helps the IRS track and monitor cryptocurrency income for tax purposes. It is important for sellers to understand their tax obligations and accurately report their cryptocurrency income to the IRS, regardless of the payment processor they use.
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