FAQ • Updated February 2025

Does Polymarket Issue a 1099?

Polymarket does not issue Form 1099. Here is how to stay compliant, document your trades, and prepare for questions from the IRS.

Why no 1099 arrives

Polymarket is a decentralized prediction market protocol that routes trades through smart contracts. It does not collect KYC details such as Social Security numbers or mailing addresses, which the IRS requires before an exchange can issue Form 1099-B or 1099-K.

Without those identifiers, Polymarket cannot report your activity directly to the IRS. The obligation shifts to you—the trader—to keep accurate records and self-report any capital gains or miscellaneous income.

How to report without a 1099

  • Document each market resolution with proceeds, cost basis, and transaction hashes.
  • Enter trades on IRS Form 8949 (Part I for short-term, Part II if held >12 months).
  • Summarize totals on Schedule D, which feeds into Form 1040.
  • Attach supporting PDFs when e-filing or mail them with Form 8453 if requested by software.
Generate your Form 8949

What to keep for your records

  • Wallet addresses and proxy wallet mappings used during the year.
  • CSV/PDF exports from PolyTax, including audit trail tabs with transaction hashes.
  • Screenshots of deposits/withdrawals through exchanges or bridges, especially when converting USDC to USD.
  • Notes from your CPA or support emails; they demonstrate a good-faith compliance effort.

If the IRS sends a notice

Occasionally, the IRS compares crypto wallet flows against bank reports and issues a CP2000 letter. Respond with your PolyTax Form 8949, Schedule D, and supporting CSV exports. Demonstrating accurate self-reporting typically resolves the inquiry quickly.

Work with a tax professional if you receive a letter. They can draft the response, cite the IRS Form 8949 instructions, and ensure your totals reconcile with the agency’s records.

Author & Methodology

Prepared by Elaine Wong, CPA. Reviewed February 2025. Guidance based on IRS Form 8949 instructions and case experience defending crypto traders in CP2000 examinations. PolyTax forms reconcile trade-level data, creating a defensible audit package.

This article is educational and does not replace individualized tax advice.