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How does the IRS differentiate between cryptocurrency income reported on a 1099-MISC and a 1099-K?

Paul ViennaMay 29, 2024 · a year ago1 answers

Can you explain how the IRS distinguishes between cryptocurrency income reported on a 1099-MISC and a 1099-K form?

1 answers

  • BulatSep 23, 2021 · 4 years ago
    As an expert in the field, I can tell you that the IRS distinguishes between cryptocurrency income reported on a 1099-MISC and a 1099-K based on the type of transaction. If the income is from a business or self-employment activity, it would be reported on a 1099-MISC. On the other hand, if the income is from payment card transactions or third-party network transactions, it would be reported on a 1099-K. It's important to carefully review your income sources and accurately report them on the appropriate form to avoid any issues with the IRS.

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