Paul Bonner has made available for download his article, “Individual Taxpayers Must Answer Cryptoasset Questions, IRS Notes” on The Tax Adviser blog. The article begins as follows:
The IRS highlighted in a news release that all filers of Forms 1040, U.S. Individual Income Tax Return, 1040-SR, U.S. Tax Return for Seniors, and 1040-NR, U.S. Nonresident Alien Income Tax Return, must answer the forms’ question regarding virtual currency.
The question, which on Form 1040 is just below the address block, asks, “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?” Taxpayers must check either the “yes” or “no” box that follows, regardless of whether they engaged in any transaction involving virtual currency during the tax year, the IRS said in the news release.
To see the full article, click: “Individual Taxpayers Must Answer Cryptoasset Questions, IRS Notes”
Posted by Mallory Wentz, Associate Editor, Wealth Strategies Journal.