The Internal Revenue Service (IRS) is on the move. Recently, they released the new 1040 tax form. It will ask citizens whether or not they have had any activity in cryptocurrencies.
The IRS released a draft version of the new 1040 tax form. And it has many cryptocurrency enthusiasts shaking in their boots.
The IRS isn’t beating around the bush. The very first question is: “At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
Mind you, this is a draft version and the only options to this answer are YES or NO. There’s no bucket for you to fill in any type of amount or any follow-up asterisks to inform you to provide excel sheets.
I believe this draft will definitely change to accommodate more information. That is why the IRS provides directions for you to contribute to the form: “If you wish, you can submit comments about draft or final forms, instructions, or publications at IRS.gov/FormsComments.”
Exchanges like Coinbase provide excel sheets for you to share with your accountant during tax season. Without a doubt, the IRS will update this draft and provide instructions for you to provide documents to show your engagement with “virtual currencies.”
What is noteworthy is that the new tax form comes right after the issuance of new guidelines on cryptocurrencies.
Do you believe this type of regulation is needed to make cryptocurrencies a more legitimate store of value? Share your thoughts below with us.