USA residents will inform about their investments in cryptocurrencies

US citizens who have made any transactions with bitcoin and other cryptocurrencies will report this immediately. This follows from the draft declaration for 2020.

The question is posed to the taxpayer in the following format:
“During 2020, have you ever received, sold, sent, exchanged, or otherwise received a material interest in any of the virtual currencies?”

For the first time, the IRS announced its intention to tax cryptocurrencies back in 2014. Then the department said that profits and losses on operations with digital currencies will be regarded as capital gains. Also, salaries paid to employees in cryptocurrencies fell under taxation.

The IRS will now require information from all taxpayers.

The changes to the tax return drew criticism from a number of lawyers specializing in digital assets. Blockchain and Digital Currency Practice Co-Chair Justin Wales said the wording of the question regarding cryptocurrencies was too vague and could be challenged.



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