IRS Rewords Virtual Currency Query in Tax Form

1 min read

The Internal Revenue Service has updated a question about cryptocurrency transactions in the agency’s official document for the 2021 tax season as more individuals are becoming interested in putting their money into such digital assets, CNBC reported Wednesday.

Shehan Chandrasekera, head of tax strategy at crypto portfolio monitoring tool provider CoinTracker, said the Form 1040 query for virtual currency investors included non-taxable holdings and the agency changed wording in the new paper to state only taxable transactions.

A May report by the Department of the Treasury stated that the crypto market capitalization hit $2 trillion and digital currencies pose tax evasion risk.

“Every year, there’s a new wave of people coming into crypto who think it’s not taxed,” Chandrasekera told CNBC.

Some industry representatives told House Financial Services Committee members at a meeting earlier this month that Congress should produce clearer and bespoke crypto regulations.

On Jan. 27, the Potomac Officers Club will bring together distinguished government and industry leaders to offer the GovCon community an insight into the economic aspects and national security aspects of digital currencies.

POC’s Digital Currency and National Security forum will feature National Cyber Director Chris Inglis as keynote speaker. Industry executives invited to speak at the event include Juan Zarate, global co-managing partner and chief strategy officer at K2 Integrity, and MicroStrategy CEO Michael Saylor.

ExecutiveGov Logo

Sign Up Now! Executive Gov provides you with Free Daily Updates and News Briefings about Technology

The Ultimate Guide to Winning Government Contracts Let us show you how top executives are winning so you can replicate it