Crypto Taxes
Expert verified
5 min read

Does Binance Report to the IRS? (2024)

Does Binance Report to the IRS? (2024)
Does Binance Report to the IRS? (2024)
Our Editorial Standards:
Our content is designed to educate the 500,000+ crypto investors who use the CoinLedger platform. Though our articles are for informational purposes only, they are written in accordance with the latest guidelines from tax agencies around the world and reviewed by certified tax professionals before publication. Learn More
on this page

Have you traded cryptocurrency on Binance or Binance.US? 

In this guide, we’ll cover everything you need to know about both company’s tax reporting policies. We’ll also break down a simple way to report your Binance taxes in minutes. 

Do I have to pay taxes on my Binance transactions? 

Cryptocurrency is classified as property by the IRS. As a result, your cryptocurrency activity on Binance and other platforms is subject to capital gains and ordinary income tax. 

Capital gains tax: If you dispose of your crypto-assets, you’ll incur capital gains tax. Examples include selling your cryptocurrency for fiat or trading it for other cryptocurrencies. 

Ordinary income tax: If you earn cryptocurrency, you’ll recognize ordinary income. Examples include earning referral or interest rewards. 

For more information, check out our complete guide to cryptocurrency taxes

Does Binance report to the IRS? 

At this time, is not operating within the United States and as a result, does not report to the IRS. American cryptocurrency users that want to access Binance can instead use Binance’s partner company, Binance.US. 

Does Binance.US report to the IRS? 

When a customer earns more than $600 through staking, referrals, and other income-generating activities, Binance.US issues a Form 1099-MISC and files an identical copy with the IRS. 

This form provides information about ‘miscellaneous income’ and does not include information about capital gains and losses from disposals, which is needed to accurately report your taxes

In the future, it’s likely that Binance.US and other major exchanges will be required to report all customers’ capital gains and losses to the IRS due to the passage of the American infrastructure bill. This Form 1099-B that Binance.US uses to report to the IRS in the future will contain detailed information about all cryptocurrency disposals on the platform. 

What does the IRS do with the information Binance.US provides? 

In the past, the IRS has used information from 1099 forms to send warning letters to crypto investors. It’s reasonable to assume that large discrepancies between your tax return and your 1099 form will increase your risk of a cryptocurrency tax audit

How do I report my Binance.US taxes? 

Looking to report your Binance taxes? Cryptocurrency tax software like CoinLedger can help. 

CoinLedger integrates with Binance.US and dozens of other cryptocurrency exchanges. Once you’ve uploaded your transactions, you’ll be able to generate a comprehensive tax report with the click of a button. 

Get started with a free preview report today

Frequently asked questions

  • MinuPlus
  • MinuPlus
  • MinuPlus
  • MinuPlus
  • MinuPlus
  • MinuPlus
Want to try CoinLedger for free? Claim your free preview tax report.

Join 500,000 people instantly calculating their crypto taxes with CoinLedger.

How we reviewed this article

Edited By

All CoinLedger articles go through a rigorous review process before publication. Learn more about the CoinLedger Editorial Process.

CoinLedger has strict sourcing guidelines for our content. Our content is based on direct interviews with tax experts, guidance from tax agencies, and articles from reputable news outlets.


Demystify Crypto Taxes

The Ultimate Crypto Tax Guide (2024)

This guide breaks down everything you need to know about cryptocurrency taxes, from the high level tax implications to the actual crypto tax forms you need to fill out.

Crypto taxes overview
Crypto Tax Rates 2024: Complete Breakdown

Here’s how much tax you'll be paying on your income from Bitcoin, Ethereum, and other cryptocurrencies.

Crypto tax rates
How Crypto Losses Can Reduce Your Taxes

Crypto and bitcoin losses need to be reported on your taxes. However, they can also save you money.

How crypto losses lower your taxes

Calculate Your Crypto Taxes

  • Check
    No credit card needed
  • Check
    Instant tax forms
  • Check
    No obligations
Get Started For Free
Jump to