Kicking off this year’s tax filing season, the U.S. Internal Revenue Service (IRS) has published important tips for crypto owners to properly file their tax returns. This is the first time a cryptocurrency question has been included in the tax form. The IRS expects more than 150 million filers to reveal whether they acquired or disposed of any cryptocurrencies during the tax year.
Also read: Regulatory Roundup — New US Crypto Tax Bill, Central Banks Join Forces on Digital Currencies
IRS Kicks Off Tax Season
The IRS kicked off this year’s tax filing season last week with tips on how to file the 2019 tax returns. The deadline for filing and paying any tax owed is Wednesday, April 15. The agency expects more than 150 million individual tax returns to be filed.
Among the changes to the 2019 Form 1040, the main U.S. tax form, is the addition of “an inquiry regarding the acquisition or disposition of any virtual currency,” the agency explained. The new crypto question appears on Form 1040’s Schedule 1, entitled “Additional Income and Adjustments to Income.”
“Virtual currency is an important addition to the 1040 this year,” IRS Commissioner Charles Rettig commented. “This emerging area is a priority for the IRS, and we want to help taxpayers understand their obligations involving virtual currency. We will also take steps to ensure fair enforcement of the tax laws for those who don’t follow the rules involving virtual currency.” The tax agency elaborated:
In 2019, taxpayers who engaged in a transaction involving virtual currency will need to file Schedule 1 … The Internal Revenue Code and regulations require taxpayers to maintain records that support the information provided on tax returns.
The IRS clarified that taxpayers must
