Compliance and auditing
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MetaMask doesn’t provide tax advice. This article represents our stance on guidance received to date, which may continue to evolve and change. None of this should be considered as advice or an individualized recommendation, but it’s important to us that our users have relevant information available to them in the most accessible way possible. Please consult a local tax professional regarding your own tax circumstances.
Will MetaMask send tax forms to me or the government?
No, MetaMask does not send tax forms to you or the government. As a self-custodial wallet, MetaMask does not collect personal data or track your tax obligations.
However, you may still be responsible for reporting your crypto activity based on your country’s tax laws. We recommend keeping records of your transactions, checking with your local tax authority, and using tools like Crypto Tax Calculator or consulting a tax professional if needed.
Will Crypto Tax Calculator send tax forms to me or the government?
No, Crypto Tax Calculator (CTC) does not file tax forms with the government or send them to you. It is a self-service tool designed to help you calculate your crypto taxes and generate reports based on the data you provide. You can then use these reports to file your taxes manually or share them with your accountant.
To access your tax reports, navigate to the "Reports" page in Crypto Tax Calculator from the MetaMask portfolio sidebar, where you can download them as needed.
If you have any questions about generating reports, visit Crypto Tax Calculator’s Help Center for step-by-step guidance. If you need further assistance, you can also reach out to the CTC support team via the chat option in the bottom right corner of the platform.
What should I do if I receive an audit notice related to my crypto transactions?
It’s always best to keep a complete record of your crypto transactions using a tax tool like Crypto Tax Calculator. If you haven’t been doing this and received a crypto tax audit notice, don’t panic -- follow these steps.
Review the notice
- Identify the tax year(s) and specific information requested.
- Note the response deadline to avoid penalties.
Gather your records
- Collect transaction history from all crypto accounts you’ve used, such as exchanges and wallets (both hot and cold).
- Even if only certain years are under review, having your full transaction history ensures accurate tax reporting.
- Use a crypto tax tool like Crypto Tax Calculator that specializes in accuracy to generate detailed reports.
Consult a crypto-savvy tax professional
- A local tax expert can help you ensure compliance and communicate with tax authorities.
Respond accurately and on time
- Provide clear, factual information backed by records.
- If you need more time, request an extension before the deadline.
Stay compliant moving forward
- Keep detailed transaction records.
- Use tax software to track crypto activity.
- Stay updated on tax regulations in your country.
Will I pay lower taxes if I hold my crypto for more than a year?
Possibly! If you hold your crypto for more than one year before selling, you may qualify for a lower long-term capital gains tax rate. This rate is typically lower than the short-term capital gains tax, which applies to assets sold within a year of purchase. It will also depend on your local tax laws.
While holding your crypto for a longer period isn't always practical, it's a simple and effective strategy to reduce your tax liability. Be sure to check your local tax regulations, as tax rates and rules may vary by country.
MetaMask does not provide tax advice and this article should not be viewed as such. For questions relating to your specific situation we strongly recommend speaking with a tax professional.