The US federal tax collection agency Internal Revenue Service (IRS) is now looking to get more information about the crypto holdings of all taxpayers. For this purpose, a new question has been added on the income tax form draft for the next fiscal year.
The form 1040 as it is called will have a new question in the “Additional Income and Adjustments to Income” section. The new question asked in this section is:
“At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
The IRS is demanding a simple yes/no answer on this question with additional information requested if the yes option is selected by the filer. The move follows tighter scrutiny by federal agencies regarding cryptocurrencies in the country with additional legislation being pursued at the state level as well.
However, the IRS has not clarified what it intends to do with the requested information as cryptocurrencies can be extremely high to tax because of price volatility during the fiscal year. There are no specific guidelines announced by the US government in this regard as well.
Also, the IRS recently announced new regulations for airdrops and hard forks in the country. The tax agency is flexing its muscles to try and regulate the industry.
Image Courtesy: Pixabay.com