2019 Draft IRS Tax Form Asks About Cryptocurrency

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IRS 2019 Draft IRS Tax Form Asks About Cryptocurrency

The IRS is specifically asking taxpayers about their virtual currency transactions in the latest draft of a form forreporting certain types of income.

“At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”

This is the question the IRS asks on the latest draft of the 2019 Form 1040 Schedule 1 released Oct. 11. Taxpayers don’t need to file Schedule 1 if their answer to the question is “no” and they have no other purpose for filing the form, according to draft instructions.

• Schedule 1 is used to report types of income that aren’t listed on the main Form 1040, which taxpayers use to file their annual income tax returns.

• This draft from the IRS comes days after they issued new guidance to help investors calculate their tax liabilities resulting from virtual currency transactions.

• The added question is part of the agency’s broader effort to get more cryptocurrency users to pay the taxes theyowe and crack down on those purposely dodging their liabilities.