Every American filing taxes for 2020 will have to tell the IRS whether they used crypto this year, according to new drafts from the tax agency.
On Aug. 19, the IRS released drafts of its income tax forms for 2020, which will ask every American filing income for the year whether or not they used crypto.
Early into its very first page, the latest 1040 form asks: “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
Chandan Lodha, founder of crypto tax software firm Cointracker, told Cointelegraph:
“The cryptocurrency question is now front and center on the IRS Form 1040 for next year. Pretty clearly shows that the IRS is taking cryptocurrency taxes even more seriously.”
The news follows a series of other indicators that the tax agency is stepping up its work to bring crypto to heel.
written by Kollen Post
Heiko Closhen, Entrepreneur