PayPal to Send Cryptocurrency Tax Forms to Users by February 15 to Comply with IRS Regulations

Odaily News: PayPal has officially announced that it will provide free self-service tax filing for its debit card users, including offering free federal and state tax return filing services for 2025 to U.S. PayPal Debit Mastercard users. Additionally, according to information on PayPal's official website, users are required to report taxes on cryptocurrencies held on its platform. Starting from the 2025 tax year, the U.S. Internal Revenue Service requires U.S. digital asset brokers like PayPal to report gains from digital asset disposals on Form 1099-DA. If a user disposes of assets in their PayPal wallet, such as selling or exchanging cryptocurrencies, during the applicable tax year, PayPal will send the user the IRS Form 1099-DA by February 15.