[{"@context":"https:\/\/schema.org\/","@type":"Article","@id":"https:\/\/moneydoneright.com\/taxes\/personal-taxes\/does-robinhood-report-crypto-to-the-irs\/#Article","mainEntityOfPage":"https:\/\/moneydoneright.com\/taxes\/personal-taxes\/does-robinhood-report-crypto-to-the-irs\/","headline":"Does Robinhood Report Crypto to the IRS?  Yes \u2014 But Not All of It! [Explanation]","name":"Does Robinhood Report Crypto to the IRS?  Yes \u2014 But Not All of It! [Explanation]","description":"Robinhood has made it easier than ever for everyday Americans to trade crypto \u2014...","datePublished":"2023-05-18","dateModified":"2023-05-18","author":{"@type":"Person","@id":"https:\/\/moneydoneright.com\/author\/logan-allec\/#Person","name":"Logan Allec, CPA","url":"https:\/\/moneydoneright.com\/author\/logan-allec\/","identifier":4,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/6e74dd0453a5871d1dcfde6d40d9494765ca8bfdb01927cefee4564d4bee9075?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/6e74dd0453a5871d1dcfde6d40d9494765ca8bfdb01927cefee4564d4bee9075?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Money Done Right","logo":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","width":488,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Does-Robinhood-Report-Crypto-to-the-IRS.jpg","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Does-Robinhood-Report-Crypto-to-the-IRS.jpg","height":460,"width":1900},"url":"https:\/\/moneydoneright.com\/taxes\/personal-taxes\/does-robinhood-report-crypto-to-the-irs\/","video":{"@context":"http:\/\/schema.org\/","@type":"VideoObject","@id":"https:\/\/www.youtube.com\/watch?v=u64o8fZSPIA#VideoObject","contentUrl":"https:\/\/www.youtube.com\/watch?v=u64o8fZSPIA","name":"IRS Installment Agreements EXPLAINED | How IRS Payment Plans Work","description":"\u27a1\ufe0f Request your FREE tax relief consultation at https:\/\/choicetaxrelief.com\/free-tax-relief-consultation\/\n\nToday I am talking about IRS installment agreements, also known as IRS payment plans.  \n\n\u27a1\ufe0f IRS Tax Relief: Do you owe the IRS more than $10,000 in back taxes?  Call 866-8000-TAX (866-8000-829) or email me at taxrelief@loganallec.com and let me know how much you owe to the IRS \/ state as well as your phone number.\n\n\u27a1\ufe0f My Tax Relief Video Playlist: https:\/\/youtube.com\/playlist?list=PLHmwDU0qD1fj_JQAqO7aczwsrtLfWOSfQ\n\n\u27a1\ufe0f My Tax Relief Company: https:\/\/choicetaxrelief.com\/\n\n\u2b07\ufe0f Other Tax Relief Videos Mentioned in This Video:\n- Tax Relief Basics: https:\/\/youtu.be\/62TcXIEtKnQ\n- Offer in Compromise Basics: https:\/\/youtu.be\/tR3uaqJE86o\n- Offer in Compromise Formula: https:\/\/youtu.be\/1jDj6yHnjMI\n- How to File Back Taxes: https:\/\/youtu.be\/l4nj4ceBz_o\n- CNC Status Basics: https:\/\/youtu.be\/yHpCiTLrlCs\n\nTable of Contents:\n0:00 What Are IRS Installment Agreements?\n2:39 Installment Agreements and Collection Activities\n4:47 Installment Agreements and Notice of Federal Tax Lien\n5:58 Installment Agreements and Tax Compliance\n6:40 Installment Agreements and Current Tax Liabilities\n7:06 Installment Agreements and Tax Refunds\n7:26 Installment Agreements and Penalties and Interest\n7:51 Installment Agreement Fees\n8:35 Are Installment Agreements Guaranteed?\n9:18 Installment Agreement Rejection Appeals\n9:50 Installment Agreements and the Collection Statute of Limitations\n11:08 Installment Agreement Payment Options\n11:22 How to Request an IRS Installment Agreement\n12:26 Requirements For a Legitimate IRS Installment Agreement Request\n13:17 Standardized Ways to Request an Installment Agreement\n13:54 How to Request an IRS Installment Agreement Online\n16:19 Streamlined Installment Agreements\n16:52 Guaranteed Installment Agreements\n17:25 Using Form 9465 to Request an Installment Agreement\n18:07 Form 433-F \/ Collection Information Statements\n18:45 Partial-Payment Installment Agreements\n\n#taxrelief #taxhelp #irs","thumbnailUrl":["https:\/\/i.ytimg.com\/vi\/u64o8fZSPIA\/default.jpg","https:\/\/i.ytimg.com\/vi\/u64o8fZSPIA\/mqdefault.jpg","https:\/\/i.ytimg.com\/vi\/u64o8fZSPIA\/hqdefault.jpg","https:\/\/i.ytimg.com\/vi\/u64o8fZSPIA\/sddefault.jpg","https:\/\/i.ytimg.com\/vi\/u64o8fZSPIA\/maxresdefault.jpg"],"uploadDate":"2022-05-27T21:57:26+00:00","duration":"PT21M38S","embedUrl":"https:\/\/www.youtube.com\/embed\/u64o8fZSPIA","publisher":{"@type":"Organization","@id":"https:\/\/www.youtube.com\/channel\/UCQ9WUXlSuLlbi5BLkgtEUEA#Organization","url":"https:\/\/www.youtube.com\/channel\/UCQ9WUXlSuLlbi5BLkgtEUEA","name":"Logan Allec","description":"Logan Allec is a CPA and the founder of Choice Tax Relief, which specializes in helping people with their IRS and state tax debt.","logo":{"url":"https:\/\/yt3.ggpht.com\/43_VKqrbO06RGMcxfdQbDXosrkVRq1yf5QgSQEiR4ILUGWV9fJtTh0o2ftYMYqVo6PwnEOPRdg=s800-c-k-c0x00ffffff-no-rj","width":800,"height":800,"@type":"ImageObject","@id":"https:\/\/www.youtube.com\/watch?v=u64o8fZSPIA#VideoObject_publisher_logo_ImageObject"}},"potentialAction":{"@type":"SeekToAction","@id":"https:\/\/www.youtube.com\/watch?v=u64o8fZSPIA#VideoObject_potentialAction","target":"https:\/\/www.youtube.com\/watch?v=u64o8fZSPIA&t={seek_to_second_number}","startOffset-input":"required name=seek_to_second_number"},"interactionStatistic":[[{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=u64o8fZSPIA#VideoObject_interactionStatistic_WatchAction","interactionType":{"@type":"WatchAction"},"userInteractionCount":27854}],{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=u64o8fZSPIA#VideoObject_interactionStatistic_LikeAction","interactionType":{"@type":"LikeAction"},"userInteractionCount":618}]},"about":["Personal Taxes"],"wordCount":695,"articleBody":"Robinhood has made it easier than ever for everyday Americans to trade crypto \u2014 or at least to make or lose money based on the price movements of certain cryptocurrencies \u2014 but what does this mean for your tax situation?Does Robinhood report crypto to the IRS?\u00a0 I’ll give you the full explanation later in this article, but first, let me say something very important:\u00a0Even if a particular trading platform does\u00a0not report your crypto transactions to the IRS, it is still your legal duty to report these crypto transactions on your tax return.Got that?\u00a0 Good.\u00a0 Now let’s dig into whether Robinhood reports crypto to the IRS.Related: Are Free Stocks Taxable?Does Robinhood Report Crypto to the IRS?Yes, Robinhood reports crypto to the IRS on Form 1099-B.\u00a0 However, Robinhood only reports your gross proceeds from each crypto transaction to the IRS on this form.\u00a0 You are responsible for reporting to the IRS what you paid for your crypto \u2014 this is known as your cost basis \u2014 on the Form 8949 and Schedule D that is attached to your Form 1040 tax return.Note that Robinhood only reports the\u00a0sale of crypto to the IRS; if you merely\u00a0purchased crypto in your Robinhood account using fiat money but didn’t sell any of it during the year, then:There is no taxable event with respect to your Robinhood crypto.Robinhood will not report your crypto to the IRS since all you did was purchase crypto with fiat money.You can answer, “No,” to the “Digital Assets” question on your Form 1040 if this was your only involvement with crypto during the year.Will the IRS Catch You If You Don’t Report Your Robinhood Crypto?Yes, the IRS will catch you if you don’t report your Robinhood crypto.If you don’t report your Robinhood crypto transactions to the IRS on your tax return, the IRS will likely use the information that Robinhood gave you about your crypto on Form 1099-B to calculate what your tax liability for your Robinhood crypto transactions and send you a bill for this amount.As a matter of fact, just yesterday someone commented on one of my YouTube videos saying that the IRS sent them a proposed tax bill because they didn’t report their Robinhood crypto trading activities on their tax return.Naturally, this individual learned the hard way that yes, Robinhood\u00a0does report crypto to the IRS and if they fail to report their Robinhood crypto transactions on Form 8949 and Schedule D, the IRS will find out, perform their own calculations, and send them a bill.What If You Don’t Report Your Robinhood Crypto?So what would I, as a CPA, say to someone in this situation who is looking at a large tax bill from the IRS for their Robinhood crypto trading activities?First, I would tell them not to freak out because the IRS is very likely overcalculating your tax liability here because they likely don’t know your basis in your crypto.\u00a0 Why?\u00a0 Because like I said previously, your crypto basis is\u00a0not reported to the IRS on the Form 1099-B that Robinhood gives it.\u00a0 It’s likely that only your gross proceeds are reported \u2014 at least that’s how it’s been on every Robinhood Crypto Form 1099-B I’ve looked at.However, your Robinhood Crypto gain\/loss statement they sent you at the end of the year \u2014 which is different from your Form 1099-B \u2014 should show you your basis in your crypto.So if this is you, while I obviously haven’t seen your documents or the IRS notice you’ve received, I would say that, in general, the best course of action in these situations is to respond to the IRS and attach your Robinhood Crypto gain\/loss statement showing your true gain or loss for your Robinhood crypto transactions during the year.And if you were a client, I’d probably submit my own calculation of the additional tax due (which is probably a lot less than what the IRS is proposing) rather than trusting the IRS to take the paperwork you give them and figure it out correctly."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Taxes","item":"https:\/\/moneydoneright.com\/taxes\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Personal Taxes","item":"https:\/\/moneydoneright.com\/taxes\/\/personal-taxes\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"Does Robinhood Report Crypto to the IRS?  Yes \u2014 But Not All of It! [Explanation]","item":"https:\/\/moneydoneright.com\/taxes\/personal-taxes\/does-robinhood-report-crypto-to-the-irs\/#breadcrumbitem"}]}]