Starting next year, taxpayers using the Form 1040 to report income will be asked about their cryptocurrency use.
In a draft of the new form, the IRS asks: “At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?”
The IRS notes that forms generally are subject to approval by the Office of Management and Budget before they can be officially released. “Drafts of instructions and publications usually have some changes before their final release,” the IRS states.
The IRS draft form comes on the heels of new guidance issued on Oct. 8 for taxpayers who use or invest in virtual currency.