How to report Bitcoin taxes to IRS without Coinbase 1099: Cryptocurrency taxation can be confusing, especially if you don’t receive a Coinbase 1099 form. Many Bitcoin traders assume that if they don’t get a 1099 from an exchange, they don’t need to report their transactions-but that’s a costly mistake.
The IRS treats Bitcoin and other cryptocurrencies as property, meaning every sale, trade, or use of crypto is a taxable event. Whether or not you receive a Coinbase 1099-K, 1099-B, or 1099-MISC, you’re still legally required to report your crypto gains and losses.
In this guide, we’ll cover:
- Why you may not have received a Coinbase 1099
- How the IRS tracks Bitcoin transactions
- Step-by-step process to report Bitcoin taxes without a 1099
- Tools to help calculate crypto gains/losses
- Penalties for failing to report crypto taxes
Let’s dive in.
Why Didn’t You Get a Coinbase 1099 Form?
Coinbase issues three main tax forms:
- Form 1099-K – For users who received over $20,000 and 200+ transactions in a year.
- Form 1099-B – For users who sold crypto (only issued in certain cases).
- Form 1099-MISC – For rewards, staking, or other income over $600.
If you didn’t meet these thresholds, Coinbase may not send you a 1099, but you still owe taxes.
Other Reasons You Might Not Have a 1099:
- Traded on a non-US exchange (e.g., Binance, KuCoin before 2024)
- Used a decentralized exchange (DEX) like Uniswap
- Peer-to-peer (P2P) transactions
- Mined or earned crypto without a 1099-MISC
Even without a 1099, the IRS expects you to self-report all crypto activity.
How the IRS Tracks Bitcoin Transactions
Many traders believe the IRS won’t know about their crypto if they don’t get a 1099—this is false.
The IRS uses multiple methods to track crypto:
- Exchange Reporting (IRC 6045) – Exchanges like Coinbase report user data.
- Blockchain Analysis – Tools like Chainalysis trace transactions.
- Audits & Subpoenas – The IRS can request records from exchanges.
- FBAR & Form 8938 – If you hold crypto in foreign accounts.
In 2023, the IRS won a court case forcing Kraken to hand over user data, proving they’re serious about crypto tax enforcement.
Bottom line: Even if you don’t get a 1099, the IRS may still know about your Bitcoin transactions.
Step-by-Step: How to Report Bitcoin Taxes Without a Coinbase 1099
Step 1: Gather All Your Crypto Transaction Records
Since you don’t have a 1099, you’ll need to compile:
- Trade history (buys/sells, swaps, DeFi transactions)
- Wallet addresses (for transfers between wallets)
- Mining or staking rewards
- NFT sales
- Crypto income (airdrops, interest, etc.)
Where to find records?
- Coinbase Tax Reports (even without a 1099, you can download CSV files)
- Other exchanges (Binance, Kraken, Gemini)
- Block explorers (Etherscan, Blockchain.com)
- Third-party tax tools (CoinTracker, Koinly, ZenLedger)
Step 2: Calculate Your Gains & Losses
Since Bitcoin is treated as property, you must calculate capital gains/losses for each disposal.
Two Types of Crypto Taxable Events:
- Capital Gains/Losses – Selling, trading, or spending crypto.
- Ordinary Income – Mining, staking, airdrops, interest.
How to Calculate Capital Gains:
Gain/Loss = Sale Price – Cost Basis
- FIFO (First-In-First-Out) – Default IRS method (oldest coins sold first).
- LIFO (Last-In-First-Out) – Newest coins sold first.
- Specific Identification – Choose which coins you sold (requires detailed records).
Example:
- You bought 1 BTC for $10,000 in 2021.
- Sold 1 BTC for $30,000 in 2023.
- Taxable Gain = 30,000−10,000 = $20,000
Step 3: Report on IRS Forms
1. Form 8949 (Capital Gains & Losses)
- Lists every crypto sale/trade.
- Transfers totals to Schedule D.
2. Schedule D (Summary of Capital Gains)
- Reports net gains/losses from Form 8949.
3. Schedule 1 (Additional Income)
- Reports crypto income (mining, staking, airdrops).
4. FBAR (FinCEN Form 114) – If Applicable
- Required if you held over $10,000 in foreign crypto accounts.
Step 4: File Your Tax Return
- E-File with IRS Free File (if income < $73,000)
- Use Tax Software (TurboTax, TaxAct, CryptoTaxCalculator)
- Hire a Crypto Tax Professional (if transactions are complex)
Best Tools to Calculate Crypto Taxes Without a 1099
Since manual tracking is tedious, these tools help:
| Tool | Best For | Pricing |
|---|---|---|
| Koinly | Automated tax reports | Free-$279 |
| CoinTracker | Coinbase & DeFi tracking | Free-$999 |
| ZenLedger | CPAs & complex cases | Free-$999 |
| TokenTax | High-volume traders | 65−1,999 |
These tools sync with exchanges and wallets to auto-generate IRS forms.
What If You Don’t Report Bitcoin Taxes?
The IRS is cracking down on crypto tax evasion. Penalties include:
- Failure-to-file penalty: 5% per month (up to 25%).
- Accuracy-related penalty: 20% of underpaid tax.
- Civil fraud penalty: Up to 75% of owed tax.
- Criminal charges: In extreme cases (tax evasion).
The IRS has a Voluntary Disclosure Program for unreported crypto—better to amend now than face penalties later.
Final Thoughts
Just because you didn’t get a Coinbase 1099 doesn’t mean you’re off the hook. The IRS requires all crypto investors to report transactions, whether they receive a tax form or not.
Key Takeaways:
✅ No 1099 ≠ No Tax Obligation – You must self-report.
✅ Use Crypto Tax Software – Saves time and ensures accuracy.
✅ File Even If You Made a Loss – Losses can offset gains.
✅ Consider a Tax Pro – Complex trades may need expert help.
By following these steps, you can stay compliant and avoid IRS penalties.