Coinbase is stock market listed company in US. So as per the local law, they are bound to report everything to IRS and other related departments. So they are doing what is expected.

Secondly, staking is your income. So you must have to pay your taxes as per the local law. That should be seen as a surprise at all. If you aren't sure about these things or not sure about the dollar value to consider, always take professional help. Pay your taxes diligently because you wouldn't want regulatory hassles in your life.