How does taxes work?

Recently getting into crypto and have a few questions.

Let's say I buy $100 worth of monero. Over the course of the year, I end up with $250 of monero. I then cash it out (send from wallet to kraken account for example).

Doesn't kraken generate a report for the IRS? Would this be a capital gain? Not quite sure how this all works. Apologies in advance. Doing a lot of reading!

Thanks!