At this time, decentralized wallets like Uniswap do not report to the IRS.
However, it’s important to remember that transactions on blockchains like Ethereum are publicly visible and permanent. Tax agencies around the world analyze blockchain transactions to match ‘anonymous wallets’ to known investors.
Decentralized exchanges like Uniswap do not issue Form 1099.
Yes. In the United States, your transactions on Uniswap 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.
Decentralized exchanges like Uniswap are legal in the United States.
Fees on Uniswap and other exchanges can reduce your tax bill!
Fees directly related to acquiring/disposing of crypto can be added to your cost basis or subtracted from your gross proceeds. In either case, fees can reduce your capital gain!