The U.S. Internal Revenue Service (IRS) is directly focusing on crypto trading for the 2020 Tax Day with a checkbox on the tax form enquiring after people’s involvement in virtual currency activities.
IRS Includes Crypto Trading Question in Tax Form
The IRS has updated its Form 1040 — which covers additional income, to include a new checkbox for crypto trading. The newly added question reads:
At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency.
By clearly including this new checkbox — at the top of the form, no less, it appears that America’s tax agency is leaving no stone unturned in combating crypto tax evasion. One of the likely implications of the newly added question is that crypto traders can no longer claim ignorance.
If a crypto owner were to be caught evading bitcoin taxes, the IRS can now prove willful criminal intent. Thus, U.S. virtual currency owners and traders will have to accurately declare their cryptocurrency tax obligations or risk…