You will need to report cryptocurrency transactions to the IRS if
- You exchanged one cryptocurrency for another cryptocurrency (capital gain)
- You sold cryptocurrency directly for U.S. dollars (capital gain)
- You received cryptocurrency as payment for goods and services (ordinary income)
- You spent cryptocurrency on goods or services (capital gain owed on the appreciation only)
These are all taxable events and need to be reported to the IRS in U.S. dollar terms.