Does Binance Report to the IRS?
Yes. Binance.US reports to the IRS. It issues Form 1099-DA for crypto sales starting with 2025 transactions, plus Form 1099-MISC for staking and reward income of $600 or more, and the IRS receives a copy of each one. The global Binance.com platform is a separate story, because it stopped serving US customers back in 2019.
That split is the whole reason this question is confusing, so let’s untangle it. Which Binance did you actually use, what does it tell the IRS, and what are you still on the hook to report yourself? Here’s the 2026 picture.
If you want the full mechanics behind the numbers Binance.US reports, our guide to how crypto is taxed covers cost basis, holding periods, and what actually triggers a tax bill.
Binance.US vs Binance.com: which one are you using?
There are two completely different platforms that share a brand, and your reporting obligations depend entirely on which one held your account.
| Platform | Available to US persons? | Reports to the IRS? |
|---|---|---|
| Binance.US | Yes (most states) | Yes — 1099-DA and 1099-MISC |
| Binance.com (global) | No, exited the US market in 2019 | Does not issue US tax forms |
Binance.US is the American entity. It’s a registered US money services business, it collects full KYC (your name, address, and Social Security number), and it files information returns with the IRS just like any other US broker.
Binance.com, the global exchange, blocked US users in 2019 after regulatory pressure. It does not send 1099s to the IRS. But (and this matters) “doesn’t send a form” has never meant “isn’t taxable.” If you accessed the global platform as a US person, every taxable trade you made there is still fully reportable on your US return. The absence of a 1099 doesn’t erase the income. It just means nobody pre-filled the number for you.
What does Binance.US report to the IRS?
For the 2025 tax year and beyond, Binance.US falls under the new federal broker reporting rules. Here’s what lands at the IRS:
- Form 1099-DA covers your gross proceeds from selling, swapping, or otherwise disposing of crypto. This is new for 2025 transactions, with forms issued in early 2026. It replaces the older 1099-B for digital assets.
- Form 1099-MISC covers staking rewards, referral bonuses, and other miscellaneous income, but only when it totals $600 or more for the year.
The IRS gets an identical copy of whatever Binance.US sends you. Their Automated Underreporter program then matches those numbers against your tax return. If the form says you had $50,000 in proceeds and your return shows nothing, that mismatch is exactly what triggers a CP2000 notice.
For 2025, the 1099-DA shows gross proceeds only, not your gain. Reading the proceeds figure as profit will massively overstate what you actually owe.
Why is the cost basis on your Binance 1099 probably wrong?
Here’s the part the forms don’t fix. For 2025 transactions, the 1099-DA reports gross proceeds but not cost basis. Cost basis reporting only begins to phase in for 2026 transactions, and even then only for assets you bought on Binance.US and never moved.
So picture the common case. You bought ETH on Coinbase, moved it to Binance.US, and sold it there in 2025. Binance.US sees a sale. It has no idea what you originally paid, because the purchase happened somewhere else. Its 1099-DA reports the full sale amount with no basis to offset it. File that number as-is and you’ll be taxed as if your entire proceeds were profit.
This is the single most common error we see, and it runs in one direction: people overpay. In an internal review of 398 client cases across six tax years, 64.8% had gains overstated in at least one prior year, and 100% had tax-software errors that needed cleanup. The fix isn’t a form. It’s reconciling your full transaction history across every wallet and exchange, then applying the correct basis to each sale. That’s what turns an inflated 1099 into the number you actually owe, reported on Form 8949 and Schedule D (see how to file crypto tax).
Did you use global Binance.com? The FBAR question
If you only ever used Binance.US, you can skip this section. FBAR applies to foreign financial accounts, and Binance.US is a domestic platform, so it doesn’t trigger an FBAR filing.
But if you held funds on the global Binance.com before it cut off US users, things get more serious. The FBAR (FinCEN Form 114) requires US persons to report foreign financial accounts when the combined value tops $10,000 at any point in the year. Crypto held on an offshore exchange can fall into that net, and the penalties for not filing are steep, far steeper than the tax on the underlying gains. (This is genuinely murky territory, and the rules around crypto and FBAR are still evolving, which is exactly why it’s worth a professional’s eyes rather than a guess.)
The takeaway: a US person who traded on global Binance may have both an income reporting obligation and a foreign account reporting obligation, neither of which produced a convenient 1099. If that’s you, this is not a DIY situation.
Can the IRS see my Binance activity?
On Binance.US, absolutely. They get your 1099 data directly, and they hold your KYC identity. There’s no anonymity on a registered US exchange.
On the global platform, the answer is “more than you’d think.” The IRS has used John Doe summonses to compel offshore and domestic exchanges to hand over US customer data, blockchain analytics firms can trace wallet activity, and the digital asset question sits right at the top of Form 1040 where you sign under penalty of perjury. Betting on invisibility is a bad bet that’s getting worse every year.
If you’ve got unreported Binance activity from prior years, the move is to get compliant proactively, not to wait for a letter. Coming forward before the IRS contacts you almost always lands better than the reverse.
What should you do about your Binance taxes?
- Only used Binance.US? Pull your full transaction history (not just the 1099), reconcile the cost basis on anything you transferred in, and report the corrected gain. Don’t file the raw proceeds figure.
- Used global Binance.com as a US person? Reconstruct that history too, report the income, and get advice on whether FBAR or other foreign reporting applies.
- Used both, across multiple years, with transfers between them? This is the scenario that overstates tax the most, and the one most worth handing to a crypto tax professional.
Want to see how Binance stacks up against the other big platforms? Our hub on does Coinbase report to the IRS and the crypto exchange reporting overview cover the full landscape.
Frequently asked questions
Does Binance report to the IRS?
Binance.US reports to the IRS. It issues Form 1099-DA for gross proceeds from crypto sales starting with 2025 transactions, and Form 1099-MISC for staking and reward income of $600 or more, with copies sent to the IRS. The global Binance.com platform exited the US market in 2019 and does not issue US tax forms, but any taxable activity you had there is still fully reportable on your US return.
Do I have to pay taxes on Binance?
Yes. Selling crypto, swapping one token for another, spending crypto, and earning staking or referral rewards are all taxable events, whether you used Binance.US or the global platform, and whether or not you received a form. You owe tax on your gains and on reward income regardless of which Binance you traded on.
Do I have to report crypto under $600?
Yes. The $600 figure only sets when Binance.US must issue a 1099-MISC for reward income, it is not a threshold below which your crypto is tax-free. Capital gains from selling or swapping crypto are reportable from the first dollar, and so is reward income, even if no form is issued.
Does Binance.US send a 1099-DA?
Yes. For the 2025 tax year, Binance.US issues Form 1099-DA showing gross proceeds from your crypto dispositions, typically available to download by mid-February 2026. For 2025 the form shows proceeds only, so you’ll need your own records to establish cost basis and calculate the actual gain.
What happens if I didn’t report my Binance taxes?
The IRS matches the 1099 data Binance.US files against your return, and a mismatch usually generates a CP2000 notice proposing extra tax, penalties, and interest. For unreported activity on the global platform, there’s no 1099, but blockchain analysis, John Doe summonses, and the Form 1040 digital asset question all create real exposure. Coming forward proactively to amend prior years is far better than waiting for the IRS to make contact.
Sources and further reading
- IRS Digital Assets guidance
- IRS About Form 1099-DA
- IRS Frequently Asked Questions About Broker Reporting
- IRS Report of Foreign Bank and Financial Accounts (FBAR)
About the author and reviewer
Founder of Crypto Tax Made Easy. Matt has worked in crypto tax since 2017, leading reconciliation work across DeFi, cost basis cleanup, exchange tax forms, and tax software reviews. CTME has reconciled 6.7M+ transactions for 1,410+ investors, and Matt has appeared with Binance and spoken at the Australia Crypto Convention.
US tax reviewer for CTME content that includes IRS or state tax implications. Michael reviews US tax treatment, reporting, and compliance references.
Disclaimer: The information provided by Crypto Tax Made Easy is for general informational purposes only and does not constitute professional, financial, accounting, or tax advice. Consult a qualified professional about your specific situation.