September 20, 2020

In the most common tax reporting form in the United States, a cryptocurrency clause will appear

The United States Internal Revenue Service (IRS) has updated the most common form of income tax reporting to include her point about cryptocurrencies.

On Friday, the agency published a draft of the new form 1040. The annex to it now contains information on additional income and other amendments.

Irs New Form 1040 by ForkLog on Scribd

The IRS sent this project to tax companies specializing in tax services to media representatives.

One of the new questions in the updated 1040 form is:

“During 2019, did you receive, sell, send, exchange, or otherwise participate financially in any virtual currency?”

Below this question, the taxpayer is requested to fill out the relevant information on additional income.

“Taxpayers who file the application 1in order to report income and make amendments that cannot be directly indicated in form 1040, they must tick the corresponding box to answer questions about virtual currency. “Taxpayers do not have to submit annex 1 if their answer is no.”, - said representatives of the department.

Recall, the other day, the US tax for the first time in fiveyears published a guide on calculating taxes for owners of cryptocurrencies. It examines the tax liabilities created by forks, the determination of the value of the cryptocurrency received as income, and the calculation of taxable profits from the sale of digital assets.