Bitcoin
Exchanges like Coinbase must report trading information to the IRS starting in 2026
Top line
The Treasury Department will require most crypto brokers to disclose user transaction proceeds to the IRS starting in two years, the agency said. said fridaya reporting requirement introduced to contain Tax evasion through the cryptocurrency market.
PARIS, FRANCE – APRIL 13: The requirement will begin in 2026. (Photo illustration by Chesnot/Getty Images) [+] Images)
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Key facts
The rule, which takes effect in 2026, requires cryptocurrency exchanges and payment processors like Coinbase to report information about user sales and trades to the IRS, according to a declaration of the agency.
The IRS said the rule is not a new tax, noting that cryptocurrency investors always owe taxes when they sell their assets, and the new rules are “similar to those that already apply to traditional financial services.”
The rule is being touted as a way to prevent tax evasion on crypto platforms, which could make the crime more accessibility due to the fact that transactions can be linked to public addresses that are difficult to connect with specific merchants.
The change also means that crypto traders will receive simple tax reporting forms each year like investors in stocks and other traditional assets, according to Wall Street Journalwhich notes that cryptocurrency investors have historically relied on expensive and inaccurate service providers to obtain an estimate of taxes owed.
The new rule comes with exceptions, including one that excludes decentralized exchanges, which emphasize peer-to-peer trading without the use of intermediaries, from having to report user transactions.
However, the Treasury Department has indicated that it will consider more reporting requirements this year designed for decentralized crypto exchanges, in accordance with the declaration.
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great number
$28 billion. That’s how much money the reporting requirement is expected to generate in tax revenue for the federal government, according to Deloitte.
Main context
Federal regulators have been seeking to regulate cryptocurrency companies for about a decade. In recent years, the Securities and Exchange Commission has imposed lawsuits, charges and penalties against major cryptocurrency companies like Binance, Coin base It is FTX. The IRS has required crypto investors to report their transactions on their tax returns, but it has not had the power of a wide-reaching regulatory network like the tax reporting rule passed on Friday. Instead, tax authorities like the IRS have reluctantly relied on subpoenas to properly identify the transactions they care about, according to Deloitte, which noted that the challenge of regulating crypto is largely informed by constant market changes. .
Further Reading
Crypto to see stricter tax rules from 2026 (WSJ)
Tax Reporting in the Cryptocurrency Era (Deloitte)