Does Base report to the IRS?

governments

Base

Our Editorial Standards:

Our content is designed to educate the 700,000+ 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

Key takeaways

Base App does not report directly to the IRS.
The IRS can identify your wallet when you move funds between Base App and an exchange like Coinbase.

Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Base’s tax reporting policies within United States. We’ll also break down a simple way to report your Base taxes in minutes.

What is Base App?

Base App (formerly known as Coinbase Wallet) is a self-custody wallet that combines traditional crypto wallet features like storing and trading crypto-assets with social media and messaging.

While Base App doesn’t send tax forms or collect Know Your Customer (KYC) information, it’s likely that your wallet address can be linked to your identity if you’ve transferred crypto from Coinbase or another centralized exchange.

Does Base App report to the IRS?

No. Base App doesn’t share data with the IRS or issue tax forms.

However, it’s likely that the IRS can still track your transactions:

Remember, blockchain transactions are publicly visible. In the past, the IRS has worked with contractors like Chainalysis to link ‘anonymous’ crypto transactions with known investors.

Starting in 2026, exchanges like Coinbase will issue Form 1099-DA to customers and the IRS, reporting capital gains and losses. This will give the IRS more visibility into crypto transactions than ever before and potentially make it easier for the agency to identify the owner of cryptocurrency wallets.

If I use Base App in the US, do I owe taxes?

Yes, crypto transactions on Base App and other platforms are subject to tax.

Capital gains: Selling, swapping, or spending crypto is a disposal subject to capital gains tax. You’ll incur a capital gain or loss depending on how the price of your crypto has changed since you originally received it.
Ordinary Income: Staking, airdrops, and other rewards are ordinary income based on their fair market value at the time of receipt.

Moving crypto between your own wallets (such as from Coinbase to Base App) is not subject to tax.

Does Base App have KYC?

No. Base App does not require KYC information. However, if you purchase crypto within the app through Coinbase’s exchange service, you will be required to verify your identity.

Is Base App legal in the US?

The Base App is legal in the US. You are required to report your taxable income from Base and other crypto platforms to the IRS.

How do I reduce my US taxes from Base App activity?

While there’s no way to evade taxes, here are two ways to reduce your tax bill legally:

Tax-loss harvesting: By selling your crypto at a loss, you can offset your capital gains and up to $3,000 of income. Additional losses can be rolled forward into future tax years! ‍
Use crypto tax software: Crypto tax software like CoinLedger can help you save time filing your taxes and help you spot your biggest tax-saving opportunities.

Looking for a simple way to report your Base taxes? With CoinLedger, you can import your Base transactions and auto-generate a complete gains, losses, and income tax report in minutes.

CoinLedger integrates with Base and dozens of other wallets, blockchains, and cryptocurrency exchanges to automate the entire crypto tax reporting process.

You can get started with a free preview report today.