Coinbase to Issue 1099-MISC Tax Forms, Hopefully Eliminating a Common Tax Problem

Coinbase announced that it will begin issuing form 1099-MISC to certain users for the 2020 tax year, replacing the old 1099-K forms that have created major tax headaches for investors. This is great news for users of the largest cryptocurrency exchange in the US. To read about it on our blog, click here: https://gordonlawltd.com/coinbase-1099-misc/

Form 1099-K for cryptocurrency investors tends to lead to large and incorrect tax bills from the IRS. Thousands of investors have received an IRS CP2000 notice claiming they owe enormous sums. (Read more about the crypto CP2000 letters here: https://gordonlawltd.com/irs-c....rypto-cp2000-letter/

By issuing the 1099-MISC instead, Coinbase is taking an important step toward making tax reporting easier for its users.

But, this does not fix 2019 and prior years when 1099-Ks were sent out. If you're a cryptocurrency investor/trader with questions about your tax reporting, give us a call or visit https://gordonlawltd.com/reporting-crypto-taxes/