IRS Reminds Taxpayers: Crypto Reporting Requirements Still Apply

The IRS released a reminder to taxpayers that despite evolving rules governing digital assets, every taxpayer who files Forms 1040, 1040-SR, 1040-NR, 1041, 1065, 1120, 1120 and 1120S must check one box answering either "yes" or "no" to the digital asset question. The question must be answered by all taxpayers, not just by those who engaged in a transaction involving digital assets in 2023. Taxpayers must check "yes" if they (1) received digital assets as payment for property or services provided, (2) received digital assets resulting from a reward or an award, (3) received new digital assets resulting from mining, staking and similar activities, (4) received digital assets resulting from a hard fork (which is defined as a branching of a cryptocurrency's blockchain to split a single cryptocurrency asset into two), (5) disposed of digital assets in exchange for property or services, (6) disposed of a digital asset in exchange for another digital asset, (7) sold a digital asset, or (8) otherwise disposed of any financial interest in a digital asset. For more information on digital asset reporting requirements, visit Tax Facts Online. : Q 7724. Note: Q is updated.