Tax season for United States residents is fast approaching, and the IRS wants to know about everyone’s involvement in the crypto space. Thanks to a recently updated income tax form including a question about crypto activity, tax preparation companies like H&R Block are advising filers to be sure to disclose their details. The service maintains that providing any information, even if imperfect, could result more lenient treatment from the much-feared collection agency.
Also Read: Lawmakers Want Answers From IRS, Citing Major Issues With Crypto Tax Guidance
The New, Critical Question
Astute observers of the 2019 Schedule 1 tax form will notice a new question at the top of the page: “At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
The prompt can be unsettling even for those little to no involvement in the space. Perhaps a friend sent some dust to a wallet downloaded just for experimental purposes. Or maybe someone made a few transactions but soon…