Fun

The IRS Will Now Ask if You Own Crypto in the Most Widely Used US Tax Form

News Feed - 2019-10-12 02:10:04

The Internal Revenue Service (IRS) has updated the main form individual U.S. taxpayers use to report their income to include a question about cryptocurrencies.


Following the release earlier this week of the IRS’s long-awaited guidance for reporting crypto-related income, the IRS on Friday circulated a draft of the new Form 1040, Schedule 1, Additional Income and Adjustments to Income. The draft was shared in an email to tax software companies, which the agency also shared with journalists.


The sheet, prefaced by a warning that it’s only a draft and not an actual document for filing taxes, asks at the top: “At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”


The main parts of the form, “Additional Income” and “Adjustments to Income,” both appear below this question.


“Taxpayers who file Schedule 1 to report income or adjustments to income that can’t be entered directly on Form 1040 should check the appropriate box to answer the virtual currency question. Taxpayers do not need to file Schedule 1 if their answer to this question is NO and they do not have to file Schedule 1 for any other purpose,” the IRS said.


The IRS asked its software partners to send comments on the new form in the next 30 days.


The guidance released this week was the agency’s second-ever given on virtual currencies, following five years of silence on the matter. The document provided answers to long-standing questions, addressing such issues as crypto received as a result of a hard fork, buying goods and services with virtual currencies, calculating the fair value of crypto holdings and other matters.


Form 1040 image via Shutterstock

News Feed

Tristan Greene3 hours agoResearchers at ETH Zurich create jailbreak attack bypassing AI guardrailsArtificial intelligence models that rely on human feedback to ensure their outputs are harmless and helpful may be univers
Ana Paula Pereira8 hours agoSolana’s Cardinal shuts down, citing economic conditionsAccording to the protocol’s closing schedule, part of the operations will cease on July 19, while the withdrawal period ends on Aug.
Brayden Lindrea8 hours agoCrypto scams are down 77% — but this exploit is making a huge comebackAttackers of this kind are supposedly "big game hunting” large-scale organizations with deep pockets to extract ”
XRP Price To Break Out Of Consolidation: The Next Moonshot That Will Lead To $3
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Geopoly Launches Alpha Version Of Blockchain-Based Game
Geopoly Launches Alpha Version Of Blockchain-Based Game press release PRESS RELEASE.Geopoly has announced the launch of a blockchain-based alpha version of the game, which will be p
Gareth Jenkinson10 hours agoUK Law Commission recommends ‘distinct’ legal category for cryptoThe U.K.’s Law Commission highlights four major recommendations to reform laws relating to cryptocurrency use and ownersh
US Senators Question SEC Why Its Staff Is Quitting at Highest Pace in 10 Years
US Senators Question SEC Why Its Staff Is Quitting at Highest Pace in 10 Years Six U.S. senators have questioned the Securities and Exchange Commission (SEC) why its staff is quitt
Beam, BCH, BTC, Zcash to Halve Inflation Next Year
Beam, BCH, BTC, Zcash to Halve Inflation Next Year There’s been a lot of noise about Bitcoin’s halving, set to occur in May, and the effect this will have on price as
Free from Tron: Steemit’s Blockchain Fork Hive Outperforms Steem Token Value
Free from Tron: Steemit’s Blockchain Fork Hive Outperforms Steem Token Value For weeks now, the cryptocurrency community has been fervently discussing the recent acquisition of
Bitcoin analysts say BTC is in a ‘good position’ above the 200-MA and $65K
Nancy Lubale4 hours agoBitcoin analysts say BTC is in a ‘good position’ above the 200-MA and $65KBitcoin’s strong rally puts it in a “good position” where the 200-MA and $65,000 level could potentially serve as
Bitcoin Spot Is King – STH Selling Pressure Expected To Be Absorbed By ETFs
Este artículo también está disponible en español. Bitcoin has experienced a whirlwind of volatility following its recent all-time high of $93,483 set on Wednesday. Over t
40 Banks in Germany Declare Intent to Offer Crypto Services Under New Law
40 Banks in Germany Declare Intent to Offer Crypto Services Under New Law More than 40 financial institutions in Germany have reportedly declared to the country’s financial