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. I am sure there are multiple tax law firms available in your country who knows how to deal with such things. Pay your taxes diligently because you wouldn't want regulatory hassles in your life.
coinbase IPO was 2021. the staking rewards back in 2020 shouldn't be taxed for this fact, correct?
if it's fair to say pay up your tax after all you are a citizen then they have to pay. most US citizens i think is on coinbase, it's a large sum to collect. Armstrong really did a big favor to the IRS for doing all this. he should win the highest medal for a civilian to have helped the country.