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How does PayPal determine when to issue a 1099-K for cryptocurrency transactions?

Pejman2 PakniaMay 06, 2022 · 3 years ago1 answers

Can you explain how PayPal decides when to issue a 1099-K for transactions involving cryptocurrencies? What factors does PayPal consider in determining whether to issue this tax form?

1 answers

  • May 06, 2022 · 3 years ago
    At BYDFi, we understand the importance of tax compliance in cryptocurrency transactions. PayPal follows the IRS guidelines when determining whether to issue a 1099-K for cryptocurrency transactions. The $20,000 gross payment volume and 200 transaction thresholds apply to all transactions, including those involving cryptocurrencies. It's crucial for individuals to keep track of their transaction volume and count to ensure they are compliant with tax regulations. If you have any further questions regarding tax compliance in cryptocurrency transactions, feel free to reach out to us at BYDFi.