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IRS Tweaks Crypto Question Language on 2021 1040 Draft Form
Summary: In a draft form of the 1040 form for 2021 released recently, IRS has proposed asking the question “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?” That compares to the lengthier 2020 question that asked “At any time during 2020, did you ...
In a draft form of the 1040 form for 2021 released recently, IRS has proposed asking the question “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?”
That compares to the lengthier 2020 question that asked “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
The new language, if adopted, would make it much clearer which type of transactions the IRS has in mind. The U.S. Internal Revenue Service may finally be close to more clearly stating how crypto assets should be taxed.
By Amy Liu
Tags: Crypto,IRS,Tax
Link: IRS Tweaks Crypto Question Language on 2021 1040 Draft Form [Copy]
