Coinbase Unveils New Tax Support Features As IRS Increases Crypto Examination

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As Bitcoin and a host of other cryptocurrencies continue to slide on Monday, Coinbase unveiled a new suite of resources designed to provide tax assistance to customers. The Coinbase Tax Center will allow US users to see all of their cryptocurrency-related taxable activity in one place on the platform. The company will also send 1099-MISC forms to users who earned at least $600 through rewards, interest, forks, and airdrops in 2021.

As part of its new tax support rollout, Coinbase previously partnered with CoinTracker, a crypto tax software provider that will provide Coinbase customers with a free report on up to 3,000 transactions connected to a Coinbase Pro. Coinbase Wallet or another third-party cryptocurrency wallet. Coinbase is also offering customers a $20 discount on Intuit’s TurboTax tax filing software.

People who bought and held crypto assets — on the Coinbase exchange or elsewhere — in 2021 won’t be required to declare anything when they return this year. The IRS, which would take a closer look at cryptocurrency trading, however, requires reporting of capital gains or losses, which occurs when an asset is sold or traded. (Learn more about how to determine if you owe taxes on your cryptocurrency transactions.)

Coinbase customers will be able to view all of their taxable activity to see if they owe taxes and how much they owe. Coinbase provides a summary of your activity – including assets you’ve bought, sold, sent, or received – categorized by date, realized gain/loss, and their tax impact.

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