How would one operate a Cryptocurrency Mining Pool and comply with IRS n-14-21.pdf?
I want to operate a Cryptocurrency mining pool. There are many operating in the US, but I can't seem to figure out how they handle taxes. I understand the cryptocurrency mining and trading rules, but the issue is - How do mining pools handle paying users for shares of work they do? Nearly all pools have no miner identification.
The n-14-21.pdf IRS document says any payments of $600 or more would be reportable and require a TIN (tax ID number) for the payee. How would any mining pool comply with that since their miners are just a Wallet address and IP address?
It feels like the pool would be taxed on the blocks they mine with their coin base address, and then have expenses when they pay miners. Is that right? What is very unclear is how the pool could possibly comply with international psudo-anonymous miners and requiring a TIN.
Thank you for any help or insight you can provide.