got my PayPal 1099 /// what now?

Does bitcoin send out 1099?

First and foremost book the income. The IRS computer audits ALL 1040s.  If they show a 1099 and you don’t the examination escalated!

You do not need to provide reciepts unless you are audited. At that point, abscent proof of payment (your basis) you may be required to demonstrate with “reasonable satisfaction” the MSRP prices on your gear in the year offered for sale.  The IRS will then “impute basis” and do the profit/loss calculation from there.

It is my strong conviction that you should have a CPA prepared and CPA signed return.  This greatly reduces your risks.  Remember these are goverment employees- they take the path of least resistance and a CPA in this case IS resistance.
 

Does bitcoin send out 1099?

If you traded through a major exchange (Binance, Coinbase etc) they should, though they did not always in the past. You’re still supposed to report and pay taxes on any trades for profit that you’ve done, regardless of a 1099. And technically if you made significant profits you’re supposed to pay estimated taxes every quarter before year end. But the risk of not reporting really has "teeth" if you were issued a 1099. Good luck with the accounting on crypto, it’s complicated if you did a lot of buy/sell - that’s on you.

If you missed a 1099 on a prior year you might be at risk. If you didn’t miss a 1099 then you might be OK depending on how much effort the IRS wants to spend on backtracking this stuff.

I used Binance and even in the years before they issued 1099’s (IIRC 2021 and earlier), you could download a file (PDF, CSV) with all your raw transactions for the year. That doesn’t include the accounting number-crunching you need to report taxable income. It’s nasty stuff; I’m a software dev by trade so I wrote my own.

@welcher summed it up very well.

Herman, consult your accountant! First, anyone who goes after PayPal or Venmo is an utter idiot!!  PayPal and Venmo funds  are subject to to taxation. Your sales sales late not a matter of profit! Those funds are subject to law approved by Congress requiring those specific middle men services to issue a 1099 ton all deposits to you over a specific threshold. The number on any 1099 is considered ordinary income. Also, we are required to report all purchases which are taxable in-state by an entity or sale by individual to individual: it is called a use tax. Dell and Gareway used to sell and charge no state income tax as an example. Companies would purchase thinking they would not be taxed. Wrong! Unfair competition and a huge loss of state sales tax revenue, including individual purchaser. When you purchase a car, you are  required to to pay tax on your purchase upon transfer of it’s title.. These things are not capital gains. If you want toaviud tax I suggest you use Zelle. They deposit and withdraw to and from bank accounts solely. Talk to your accotanttant. If you don't use a professional preparer, good liluck. That's just plain penny/wise pound foolishness. In a nutshell when individuals don't report sales and ourchaseses is called tax fraud either by ripping off the state or Federal Governments. You can't plead ignorance. You will be fined and possibly subject to interest. My first statement stans.