US crypto firms invest in tax solutions as IRS updates reporting forms
Cointelegraph
Published Jan 07, 2021 07:38AM ET
Updated Jan 07, 2021 09:20AM ET
United States regulators are continuing to fine-tune their tax reporting requirements for cryptocurrency users. A second draft of Form 1040 from the Internal Revenue Service for the 2020 tax season published online suggests that the agency will now require anyone who was engaged in any transaction involving cryptocurrency in 2020 will need to declare it:
The draft guidance clarifies that transactions encompass "the receipt or transfer of virtual currency for free" (e.g., via airdrops and hard forks), the exchange of virtual currency for goods or services, the purchase or sale of virtual currency, an exchange of virtual currency for other property, including for another virtual currency, and the acquisition or disposition of "a financial interest in virtual currency."
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Written By: Cointelegraph
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