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Crypto Tax Reporting (Made Easy!) - bitcoincryptonite.shop / bitcoincryptonite.shop - Full Review!U.S. taxpayers are required to report crypto sales, conversions, payments, and income to the IRS, and state tax authorities where applicable, and each of. According to IRS Notice �21, the IRS considers cryptocurrency to be property, and capital gains and losses need to be reported on Schedule D. Yes, US taxpayers are generally required to report cryptocurrency activity on their taxes if they've earned crypto as income or have disposed of.