Binance.US tax reporting after the 2023-2024 wind-down. 1099-MISC thresholds, API tax tool, and getting pre-closure data for your return.

Binance.US is the exchange users wish they had exported. After the June 2023 SEC suit and the subsequent operational unraveling - fiat rails suspended, product withdrawals, trading volume collapse - many U.S. users still had active accounts into 2024 and the tail end of 2025. If you were one of those users and you have open 2022, 2023, 2024, or 2025 tax positions from Binance.US activity, this is the article on how to pull your data, reconcile against what the IRS already has, and file clean before the platform disappears for good.

What Binance.US Issued Historically

Binance.US has a specific 1099 history that differs from most U.S. exchanges:

For the 2022 and 2023 years especially, many Binance.US users have untreated short-term trading activity sitting unreported because no 1099-B was ever issued. The IRS still knows about it - a John Doe summons and the 2023 settlement agreements with the SEC produced customer data that the IRS can request.

The API Tax Report Tool

Binance.US historically provided a built-in tax tool and an API that could be connected to crypto tax software. Both paths are at risk as the wind-down progresses. The practical reality right now:

If you no longer have access to your Binance.US account - password lost, 2FA device gone, support unreachable - you can still request records through the platform's designated successor entity or, failing that, reconstruct from the other side of every transaction (your bank records, your self-custody wallet receipts, blockchain explorers).

Post Wind-Down: What Happens to Your Tax Data

When a U.S. crypto exchange shuts down, the customer transaction data typically follows one of three paths:

In all three paths, the IRS will have or can get your data. The only question is timing and whether your return matches. The worst position to be in is an unreported Binance.US year where the IRS later receives the data through interagency cooperation and the AUR system produces a several-year-old deficiency assessment with penalties and interest compounded.

Pre-2024 Activity: The Six-Year Window Matters

Under IRC §6501, the IRS generally has three years to audit a return. That window extends to six years if gross income was understated by more than 25%. For unfiled years, there is no statute of limitations. For fraudulent returns, also no statute.

For Binance.US users who did not report trading activity in 2020-2023, a 25% gross-income understatement is easy to hit - especially in 2021 during the bull market. The practical implication: Binance.US returns from 2020 or 2021 may still be open for IRS audit through 2027 or later. Don't count on the clock unless you filed and reported clearly.

Worked Example: Reconstructing a 2022 Binance.US Year

Client traded heavily on Binance.US in 2022. Never received a 1099-B. Reported only $900 of staking income from a 1099-MISC on his 2022 return. The IRS sent a CP2000 in late 2024 proposing $47,000 of additional tax and $11,800 of penalties plus interest, based on data indicating $340,000 of gross proceeds on the Binance.US platform.

Reconstruction:

Client paid roughly $21,000 of tax and assessed penalties rather than the $58,800 the IRS first proposed. The $37,000 savings came from two moves: getting the CSV before the platform wound down, and responding to the CP2000 with real numbers rather than ignoring it.

What to Do Right Now if You Have Binance.US Activity

The 1099-DA Transition Complication

If Binance.US issues a 1099-DA for 2025 activity, it will report gross proceeds. Basis information is phased in for 2026 transactions under §6045A. For 2025 returns, the 1099-DA will show proceeds only - and many users will have to supply basis themselves. See Form 8949 for crypto on Box B/E selection for proceeds-only situations.

If Binance.US shuts down before issuing 1099-DA, the reporting obligation does not disappear - it moves to the successor or trustee. The IRS will still receive data eventually. Plan as if the form is coming.

State Tax Implications

Binance.US operated under state money-transmitter licenses that started being pulled in 2023-2024. If you were in a state where the license was pulled mid-year, your account may have been restricted earlier than the national wind-down. The tax activity still reports to your state of residence regardless of where the exchange was licensed. Make sure your state return captures the full year's activity.

Common Mistakes

Related Reading

For what happens when the IRS collects customer data at scale, IRS John Doe summons. For other exchange walkthroughs, Crypto.com tax reporting, Robinhood crypto, PayPal crypto. For the form where everything lands, Form 8949 for crypto. For resolving a resulting tax balance, Crypto Offer in Compromise.

Darrin T. Mish is a tax attorney with 32 years of IRS resolution experience and more than $100 million in IRS debt resolved. Admitted in Florida, Colorado, and Texas. Member of the American Society of Tax Problem Solvers (ASTPS). Martindale-Hubbell AV Preeminent rated.

Binance.US problem? The clock is running.

Every month of wind-down makes reconstruction harder and IRS exposure more expensive. If you have unreported or wrongly reported Binance.US activity, stop waiting. Call (813) 229-7100 for a confidential consultation or book at https://getirshelp.com/contact. 32 years of cleaning up crypto cases - we've seen this movie before.