Does Gemini Report to the IRS? – 2026 Guide

Summary

• Gemini reports certain customer activity to the IRS, including eligible income and digital asset sales.
• For 2025 activity, Gemini reports proceeds from sales and trades on Form 1099-DA during the 2026 filing season.
• Gemini does not report cost basis to the IRS for 2025 Form 1099-DA activity, so users still need their own records.
• Self-custody wallets, other exchanges, and DeFi activity remain the user’s responsibility to track and report.
• Gemini tax forms should be treated as a starting point.

Does Gemini report to the IRS? The answer is yes. As a U.S.-based cryptocurrency exchange regulated under New York law, Gemini is required to share certain customer information with the Internal Revenue Service. For several years, this has meant sending Form 1099-MISC to both customers and the IRS when users earned more than $600 in rewards, staking income, or bonuses. That framework covered income but not capital gains or losses from trading activity.

For the 2025 tax year, new federal rules expanded how exchanges like Gemini report digital asset activity. Under Treasury regulations finalized in 2024, Gemini must now report sales and trades of digital assets on Form 1099-DA. The first of these forms are sent during the 2026 filing season for transactions that occurred in 2025. Gemini says recipient statements are delivered to customers by February 15, with IRS e-file delivery after customer statements are issued.

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Even though Gemini sends these forms to the IRS, users remain responsible for accurately reporting all taxable events. Transfers, off-platform trades, and DeFi transactions are not covered by Gemini’s reporting and must still be included in individual tax returns.

Gemini’s IRS Reporting Before 2025

Before new rules took effect, Gemini’s IRS reporting was limited to certain types of income. The exchange issued Form 1099-MISC to any U.S. customer who earned at least $600 in staking rewards, referral bonuses, or promotional income. A copy of this form was also sent directly to the IRS, creating a paper trail that tied those rewards to the individual taxpayer.

What Gemini did not report was just as important. The exchange did not send information about a customer’s trading profits or losses, nor did it include details about transfers into or out of the platform. For example, if a user bought Bitcoin on one exchange, moved it to Gemini, and later sold it there, Gemini had no way to calculate the original cost basis. In these cases, only the user could determine the taxable gain or loss.

Because of these limits, customers were required to track their own trading history and report it independently. Capital gains and losses had to be disclosed on Form 8949 and summarized on Schedule D of the federal tax return. IRS instructions made it clear that the absence of a 1099 form did not remove the obligation to report.

This earlier framework placed the burden of accuracy on the user, with Gemini serving only as a partial source of tax documents.

New IRS Rules Effective 2025

In June 2024, the U.S. Treasury finalized regulations implementing the Infrastructure Investment and Jobs Act, expanding broker reporting to cover digital assets. As of January 1, 2025, U.S. exchanges like Gemini are required to issue a new tax document, Form 1099-DA, to both customers and the IRS. This form reports proceeds from sales, trades, and other dispositions of digital assets.

The first 1099-DA forms will arrive in February 2026, covering activity that took place during the 2025 tax year. For 2025 activity, Gemini reports proceeds only on Form 1099-DA and does not report cost basis to the IRS. Beginning with 2026 sales, cost basis reporting starts for covered assets, meaning assets purchased in a Gemini account after January 1, 2026. This phased rollout is designed to give exchanges time to implement reporting systems and for users to supply missing cost basis details for assets transferred onto the platform.

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To comply with the new framework, Gemini must collect valid tax certifications from all customers. Accounts with a U.S. address must provide a Form W-9 confirming their Tax Identification Number, while non-U.S. customers must submit a Form W-8. Gemini is required to verify these identifiers through the IRS TIN Matching system.

Any account that fails to provide valid tax information risks backup withholding. In such cases, Gemini will withhold 24% of the proceeds from asset sales and report the withholding on Form 1099-DA. Gemini may also restrict trading activity until the required certifications are completed.

What This Means for Gemini Users

The expansion of reporting requirements means Gemini customers can no longer assume their trading activity is invisible to the IRS. Once Form 1099-DA is in place, sales and trades of digital assets on the exchange will be reported directly to tax authorities alongside traditional income forms. This creates a stronger link between exchange activity and the taxpayer’s annual return.

Users should also pay close attention to accounting methods. Gemini asks customers to maintain and reconcile their own accounting method, such as FIFO or HIFO, especially because 2025 Form 1099-DA reporting does not include cost basis. If no choice is made, FIFO will be applied by default. Selecting the method can affect the size of reported gains and should be consistent across all records.

It is important to note that the reporting system has limits. Transactions involving self-custody wallets, other exchanges, or DeFi protocols fall outside Gemini’s reporting scope. The IRS still expects taxpayers to include these activities, which means maintaining accurate personal records remains essential.

Failing to reconcile all activity can lead to mismatches between what Gemini reports and what a user files. Such discrepancies increase the risk of audits, penalties, or interest on unpaid tax. The safer approach is to treat Gemini’s forms as a starting point rather than a complete record.

Tools to Handle Gemini Taxes

Gemini has a Tax Center where you can pull your full transaction history, check gain and loss reports, and download statements. Gemini also provides tax documents and reporting tools through its Tax Center, but users still need to reconcile cost basis, external wallets, other exchanges, and DeFi activity themselves or through third-party tax software. It makes filing a bit easier, but it doesn’t cover everything.

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The main issue is cost basis. If you bought crypto on another exchange and later moved it to Gemini, they don’t know what you originally paid. That means the 1099 Gemini sends to the IRS might not tell the whole story. Because of this gap, most people end up using separate tax software to keep all of their trades in one place.

Platforms like CoinLedger, Koinly, and TokenTax hook directly into Gemini through an API or a CSV upload. When you sync everything across your wallets, exchanges, and even DeFi, you get a clearer picture of your actual gains, losses, and income.

Conclusion

Gemini does report to the IRS, and the scope of reporting has expanded under new federal rules. Forms 1099-MISC and 1099-DA ensure that rewards, sales, and trades conducted on the exchange are visible to tax authorities.

Customers, however, remain responsible for accurate and complete reporting. Transfers, off-platform trades, and DeFi activity fall outside Gemini’s scope but must still be included on a tax return. Using Gemini’s Tax Center or third-party software can help avoid mismatches between personal filings and IRS records.

This information is provided for educational purposes only. It is not tax advice. For guidance on individual circumstances, consult a qualified tax professional.

Frequently Asked Questions (FAQ)

Does Gemini report to the IRS?

Yes. Gemini reports certain information directly to the IRS. Before 2025 this meant Form 1099-MISC for customers earning $600 or more in rewards or bonuses. Starting with 2025 activity, Gemini also issues Form 1099-DA for sales and trades of digital assets.

What forms will I get from Gemini?

Customers may receive Form 1099-MISC for staking rewards, referral bonuses, or similar income. During the 2026 filing season, customers may receive Form 1099-DA covering proceeds from 2025 sales or trades. For 2025 activity, Gemini does not report cost basis to the IRS. For covered assets purchased in a Gemini account after January 1, 2026, cost basis reporting begins with 2026 sales.

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Do I have to pay taxes if Gemini doesn’t send me a form?

Yes. IRS rules require taxpayers to report all gains, losses, and income from cryptocurrency, even if no form is issued. The absence of a 1099 does not remove the obligation.

What if I use a cold wallet or DeFi?

Gemini cannot track self-custody wallets or DeFi transactions. These must be reported separately by the user. Tax software can help consolidate these records alongside Gemini activity.

How is Gemini Earn taxed?

Rewards from Gemini Earn are treated as ordinary income. They are generally taxed at the fair market value at the time they are received.