1040 tax form change meant to target cryptocurrency transactions
and last updated 2020-12-18 13:51:15-05
The IRS added a new question to the top of the 1040 tax form, aimed at identifying people who make money on cryptocurrency transactions. Cryptocurrency, or virtual currency, includes things like Bitcoin and is a digital representation of value that functions as a medium of exchange, according to the IRS.
The question asks: âAt any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?â The only options to answer are yes or no.
The question is similar to one that was added to the form for 2019 tax filings. At the time the question