Why do individuals in the crypto space need to fill out W9 forms?

3 answers

• Apr 17, 2022 · 3 years ago
  Individuals in the crypto space need to fill out W9 forms because it is a legal requirement imposed by the Internal Revenue Service (IRS) in the United States. The purpose of the W9 form is to collect the taxpayer identification number (TIN) of the individual, which is usually their Social Security Number (SSN) or Employer Identification Number (EIN). This information is necessary for tax reporting purposes, as the IRS wants to ensure that individuals are accurately reporting their income and paying the appropriate taxes on their cryptocurrency transactions.
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• Apr 17, 2022 · 3 years ago
  Filling out W9 forms in the crypto space is like paying your taxes in the traditional financial world. It's a way for the government to keep track of your income and ensure that you're paying your fair share of taxes. While cryptocurrencies are often associated with anonymity, the IRS wants to make sure that individuals are not evading taxes by hiding their crypto income. So, if you're involved in the crypto space and earning income from it, be prepared to fill out W9 forms and report your earnings to the tax authorities.
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• Apr 17, 2022 · 3 years ago
  As an expert in the crypto industry, I can tell you that filling out W9 forms is a necessary step for individuals involved in cryptocurrencies. The IRS has been cracking down on tax evasion in the crypto space, and they require individuals to disclose their crypto income and pay taxes accordingly. Failure to comply with these tax regulations can result in penalties and legal consequences. At BYDFi, we ensure that our users are aware of their tax obligations and provide them with the necessary tools to report their crypto income accurately.
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