At this time, NFT marketplaces like OpenSea do not report to the IRS.
However, it’s important to remember that transactions on blockchains like Ethereum are publicly visible and permanent. The IRS has worked with contractors like Chainalysis to analyze blockchain transactions and match ‘anonymous wallets’ to known investors.
At this time, OpenSea does not issue tax documents like Form 1099.
Yes. In the United States, your transactions on OpenSea and other platforms are subject to income and capital gains tax.
If you’ve earned or disposed of crypto (ex. Sold or traded away NFTs) during the year, you’ll have a tax liability to report to the IRS.
NFT marketplaces like OpenSea are legal in the United States.
Remember, there is no way to legally evade your taxes in the United States. However, there are tools like tax-loss harvesting and cryptocurrency tax software that can help you save thousands of dollars legally.
For more information, check out our guide on how to avoid crypto taxes.