U.S. IRS Adds Question About Using Crypto To New Draft Income Tax Form
The U.S. Internal Revenue Service (IRS) has added a question on crypto ownership to the Standard Income Tax Form 1040 for the upcoming tax season.
IRS wants to know your crypto in 2019
On October 11, a draft of the “Additional Income and Income Adjustments” section of the new Form 1040 surfaced that included an amendment to the “Additional Income and Income Adjustments” section. On the new Form 1040, the additional question reads as follows:
“At any time in 2019, have you received, sold, sent, traded or otherwise acquired a financial interest in a virtual currency? “
The question expects a direct yes or no, with no further details required.
Cointelegraph previously reported that the IRS has issued new guidelines for tax reporting on cryptocurrency airdrops and hard forks. The tax agency guidelines answered questions about cryptocurrency transmissions for investors who hold cryptocurrencies as fixed assets and established general principles of tax law to determine that virtual currency is property for purposes federal tax.
H&R Block helps with crypto taxes
Cointelegraph reported in September that the U.S. accounting firm H&R Block began to mediate between crypto users and the IRS after the agency began sending letters to crypto traders who may not have. not be declared their income and paid their taxes.
H&R Block can now help people who have transacted in digital currency, specifically providing consultation on how to properly file their cryptocurrency gains and losses on tax returns.