Crypto Tax Reporting for Businesses US 2026 – Corporate and LLC Guide

More companies are holding Bitcoin on their balance sheet and accepting crypto payments. Here is how the IRS treats business crypto transactions differently from individual holdings.

How Business Crypto Is Taxed Differently

Unlike individuals, C-Corporations pay the flat 21% corporate tax rate on all gains – no long-term capital gains preference. S-Corps and LLCs pass income through to owners at their individual rates.

Bitcoin on the Corporate Balance Sheet

• GAAP (old rule): Intangible asset; impairment writedowns when price falls; gains only on sale
• FASB 2025 rule: Companies may elect fair value accounting – recognize gains and losses each period
• Tax: Still only taxable upon actual sale/disposal

Accepting Crypto Payments

When a business accepts crypto for goods/services: FMV on date received = ordinary business income. The crypto becomes inventory at that cost basis. When sold later, gain/loss is calculated from that basis.

Paying Employees and Contractors

• Employees: FMV on paydate = wages subject to withholding and FICA; report on W-2
• Contractors: FMV on paydate = self-employment income; 1099-NEC if over $600
• Business deducts the expense like any other compensation

Deductible Business Crypto Expenses

• Transaction fees (business purpose)
• Crypto tax software subscriptions
• Custody and security costs
• Mining equipment (Section 179 or depreciation)
• Accounting and legal fees

Form 8300: Large Crypto Transactions

Businesses receiving more than $10,000 in crypto (or cash) in a single or related transactions must file Form 8300 within 15 days. The Infrastructure Investment and Jobs Act (2021) expanded Form 8300 requirements to include crypto.

Disclaimer: This article is for general informational purposes only and does not constitute tax advice. For individual tax advice, consult a licensed tax professional.