At this time, software wallets like Trust Wallet do not report to the IRS.
It's important to remember that transactions on public blockchains like Ethereum are publicly visible and permanent. The IRS works with contractors like Chainalysis to match ‘anonymous wallets’ to known investors.
Yes. In the United States, your transactions on Trust Wallet and other platforms are subject to income and capital gains tax.
If you’ve earned or disposed of crypto (ex. Sold or traded away cryptocurrency) during the year, you’ll have a tax liability to report to the IRS.
For more information, check out our complete guide to cryptocurrency taxes.
Software wallets like Trust Wallet 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.