IRS Plans to Directly Ask About Crypto on 2019 Tax Form
Starting this year, the U.S. Internal Revenue Service plans to directly ask taxpayers if they have invested in cryptocurrency.
The IRS has released a draft of the “Additional Income and Adjustments to Income” section of its upcoming 1040 tax form, which most taxpayers use to determine how much they owe for the year.
It features a yes or no question on virtual currencies.
“At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
The IRS says comments about the form can be submitted here.
The agency recently released a long-awaited update on its cryptocurrency tax guidelines, outlining its policies for airdrops, tax consequences for coin exchanges between wallets and how to calculate fair market value (FMV).