IRS reformulates virtual currency request in tax form
The Internal Revenue Service updated a question on cryptocurrency transactions in the agency’s official document for tax season 2021, as more individuals become interested in investing their money in such digital assets, CNBC reported Wednesday.
Shehan Chandrasekera, head of tax strategy at crypto wallet monitoring tool provider CoinTracker, said the Form 1040 request for virtual currency investors included non-taxable holdings and the agency changed the wording of the new document to indicate only taxable transactions.
A May report from the Treasury Department said the crypto market capitalization reached $ 2,000 billion and that digital currencies pose a risk of tax evasion.
“Every year there is a new wave of people entering crypto who think it’s untaxed,” Chandrasekera told CNBC.
Some industry representatives told members of the House Financial Services Committee at a meeting earlier this month that Congress should produce clearer and more tailored crypto regulations.
On January 27, the Potomac Officers Club will bring together prominent government and industry leaders to provide the GovCon community with insight into the economics and national security aspects of digital currencies.
POC’s Digital Currency and National Security Forum will feature National Cyber Security Director Chris Inglis as the keynote speaker. Industry executives invited to speak at the event include Juan Zarate, Global Co-Director and Chief Strategy Officer at K2 Integrity, and MicroStrategy CEO Michael Saylor.