Jan 01, 2020
Days after the Internal Revenue Service (IRS) released two new pieces of guidance for taxpayers who engage in transactions involving virtual currency, the IRS announced another compliance measure: a checkbox on form 1040. The checkbox, which appears on the early release draft of the form 1040, asks taxpayers about financial interests in virtual currency.
The checkbox appears on the second early release draft of the 2019 Form 1040, Schedule 1, Additional Income and Adjustments to Income (downloads as a PDF). The checkbox is at the top of Schedule 1, which is used for reporting income or adjustments to income that cannot be entered directly on the front page of form 1040.
The question is: At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?
Call the accountants at Terry Lockridge & Dunn to discuss what this could mean for you. You can reach them at 319-364-2945 in Cedar Rapids or 319-339-4884 in Iowa City.