When does a US exchange have to file something with the IRS on behalf of a customer?

I cleaned out a few sats that were left on Gemini from way back and somehow made a profit of 1 cent. They filed a 1099 for that. That just seems ridiculous, and I'm wondering if it's the feds or the exchange requiring it.

If I buy KYC sats now, I use Strike, so does nostr:npub1cn4t4cd78nm900qc2hhqte5aa8c9njm6qkfzw95tszufwcwtcnsq7g3vle have to 1099 all my zaps to peoplewhohavesexwithgoatsthatareonfire.com?

#asknostr