Bitcoin Self-Custody and IRS Reporting: What U.S. Holders Should Know
This page clarifies boundaries: what is generally reported to the IRS in connection with Bitcoin, what is not reported by default when you self-custody, and why self-custody is not tax evasion. We do not give tax advice; we point you to official guidance and to the professionals who do.
What Is Reported (Generally)
Taxable events in connection with Bitcoin typically include disposals (sells, trades, spend) and income (e.g. mining, rewards). Taxpayers are generally required to report such events on their tax returns. Forms commonly associated with these reporting obligations include Form 8949, Schedule D, and others depending on the type of transaction. For current rules and forms, see IRS guidance linked above; we do not interpret that guidance.
What Is Not Reported (By Default)
Hardware wallets and the Bitcoin protocol do not report your holdings to the IRS. There is no "Form X for holding" that a wallet or the network files on your behalf. Holding Bitcoin in self-custody does not by itself create a reporting obligation for the mere fact of ownership. Your obligation to report taxable events (disposals, income) remains; we are only clarifying that the wallets and protocol themselves do not report.
Self-Custody Is Not Tax Evasion
Self-custody is about key control and security—who holds the keys, who can sign. It does not remove U.S. tax obligations on disposals or income. Reporting obligations depend on your facts; a CPA or tax professional should be consulted. We work alongside your professionals; we do not provide tax advice.
Where CPAs and Tax Professionals Fit
You maintain records of your transactions; your CPA or tax adviser uses them for filing and planning. We do not provide tax advice. We can work alongside your professionals—for example, by providing withdrawal or transaction records that may be relevant for cost basis or other reporting—but the interpretation and filing are between you and your tax professional.
Talk to your CPA; we can help with the custody and documentation layer.
Book a session to see how collaborative security and documentation fit your setup.