Gemini takes the position that it is a Third Party Settlement Organization (“TPSO”) under Section 6050W of the Internal Revenue Code and must file IRS Forms 1099-K accordingly for certain transactions settled on its platform. We will continue to evaluate this assessment and update our client base if Gemini’s interpretations or IRS guidance changes.
Will I receive any tax documents from Gemini?
Gemini will deliver Forms 1099-K to Gemini members who meet BOTH of the following conditions:
- Their Digital Asset-for-USD sales on the exchange exceed 200 transactions during the calendar year, AND
- Their total sales proceeds from all sales of Digital Asset-for-USD exceed $20,000 during the calendar year.
If your account has met both of the thresholds above, you will receive a Form 1099-K by email from Track1099 (on behalf of Gemini) before the end of January. An identical copy of the Account’s Form 1099-K will be filed with the IRS.
If you were expecting to receive a Form 1099-K and did not, it’s likely that you have only met ONE of the conditions above, not both.
I misplaced my Gemini-issued Form 1099-K; can Gemini send another copy?
Yes! Gemini is happy to resend the Form 1099-K. Please submit a request through our contact form here. When searching through your email, please recall that the original Form 1099-K is delivered from Track1099 and not from Gemini directly.
What information is in the 1099-K form?
Gemini is required to report gross proceeds from all Digital Asset-for-USD sales executed on the Gemini exchange when applicable reporting thresholds are met.
What information is NOT included within Form 1099-K?
Form 1099-K is informational and does not show gains or losses or cost basis.
Form 1099-K is NOT the same as Form 1099-B (which shows gains or losses from broker transactions). Gemini is not required to issue Forms 1099-B because bitcoin, bitcoin cash, ether, zcash, and litecoin sales appear to be regarded as sales of personal property under current IRS guidance.
Where can I find more information about Form 1099-K?
You may read more on this IRS Instructions for Form 1099-K website. We have found that the “Specific Instructions” on Page 1 provide valuable context with respect to Gemini’s Form 1099-K reporting obligations.
We also kindly suggest that you consult with your tax advisor if you have questions about your individual tax obligations derived from your activity conducted on the Gemini exchange.
Where can I find my transaction history?
You can find the amounts found within the 1099-K in your account’s transaction history excel file. You can access this by following the two steps below:
1) Click the “View All Transaction History” button located at the bottom of this page: https://exchange.gemini.com/history
2) Click the “Download History (xlsx)” button. This will prompt the account report to download on to your device.
To tie back to the numbers within the Form 1099-K, you will need to identify the "Sell" transactions found within Column C, and aggregate the corresponding USD amounts found within Column H.
Do Forms 1099-K also apply at the state and federal level?
Yes: the Massachusetts and Vermont state tax authorities have established lower thresholds than the IRS federal requirements for Form 1099-K reporting. Any Gemini customers who reside in those states will receive a Form 1099-K when their total sales proceeds from all sales of Digital Asset-for-USD exceeds $600 during the calendar year (regardless of the number of Digital Asset-for-USD sales trades executed).
If you are a resident of Massachusetts or Vermont and exceed the lower threshold, you will receive a state Form 1099-K. You may also receive a federal Form 1099-K if you have met the qualifying conditions.
*Legal disclaimer: Gemini takes the position that it is a Third Party Settlement Organization under Section 6050W of the Internal Revenue Code for certain transactions, and accordingly must file IRS Forms 1099-K for transactions settled on its platform, including transactions involving the sale of digital currencies for cash between users. Therefore, we will be filing a Form 1099-K with the IRS and in some cases, certain State authorities, reporting transactions by Gemini customers each year where we are required to do so under applicable regulations under Section 6050W. We will also send you a copy of the IRS Form 1099-K using Track1099. Gemini does not offer tax advice; consult an outside tax professional for guidance on your tax filing obligations.