Do Coinbase transactions get reported to the IRS?

Yes, Coinbase transactions do get reported to the IRS. Coinbase complies with IRS guidelines and will report certain transactions to the government. For U.S. customers, Coinbase issues a Form 1099-MISC for rewards or fees through Coinbase.com accounts if the total amount exceeds $600 for the tax year. Additionally, in compliance with the IRS's updated guidance on cryptocurrency reporting, exchanges like Coinbase are required to send customers and the IRS a Form 1099-K if the customer has over 200 transactions and exceeds $20,000 in trading volume, although this form's use may evolve as regulations change. Thus, users should be aware that their cryptocurrency transactions can be reported and should ensure they maintain accurate records for their tax obligations.