Tax Forms For Crypto Companies

Crypto companies need to file certain tax forms in order to claim revenue. These forms are called 1099-B, 1099-MISC, and 1099-DA. It is important to understand what each one entails, and how to properly fill them out. The information in these forms will help you understand how to claim revenue from your crypto businesses.

1099-B

If you are a crypto investor, you may be concerned about the 1099-B cryptocurrency tax forms. These forms are primarily used for capital gains taxes, and the IRS expects you to itemize your transactions. They can be included on your Schedule 1 if you’re an employee or on your Schedule C if you’re self-employed. Crypto investors need to pay attention to this tax form because failing to do so will greatly increase the likelihood of an IRS audit.

1099-MISC

If you’ve traded cryptocurrency with an exchange, you may need to submit Form 1099-MISC for tax purposes. This form is issued to you after you’ve earned at least $600 from cryptocurrency transactions. It is governed by Internal Revenue Code 6071(c). Exchanges are required to issue the forms to both you and the IRS, but not all do. This could be due to poor corporate management, but in any case, you should report your cryptocurrency income to the IRS.

Form 8949

Crypto investors must separately report the sale and exchange of crypto assets on Form 8949. This is because the volume of these transactions can be extremely large, and some software may have limitations on the number of trades that can be reported. Fortunately, this form can summarize this information for you.

Form 1099-DA

The IRS is working on a new form for cryptocurrency companies called Form 1099-DA, or “Digital Asset,” that will make it easier for these companies to report customer activity and collect the tax information required. While the new form will differ from the traditional 1099-B form, it will still include a number of important details for calculating capital gains and losses on a taxpayer’s income tax returns.

Alternatives to Forms 1099

Cryptocurrency investors should submit 1099-K forms, which have sections for the cost basis, proceeds, and realized gains and losses. These forms also have sections for long-term investments.

Capital gains

If you sell cryptocurrency, you must report it on Form 8949. It will also require you to report the income you receive from mining, staking, and airdrops.

Losses

When it comes to crypto tax, one of the most important things to remember is to track all your transactions. Whether you’re selling your crypto for a profit or storing it for a loss, you’ll need to record the exact date of purchase and sale. While more sophisticated exchanges have built-in reporting systems, simpler ones may require you to root through your email, bank account, or wallet receipts.