The IRS Will Now Ask if You Own Crypto in the Most Widely Used US Tax Form
The Internal Revenue Service (IRS) has updated the main form individual U.S. taxpayers use to report their income to include a question about cryptocurrencies.
Following the release earlier this week of the IRS’s long-awaited guidance for reporting crypto-related income, the IRS on Friday circulated a draft of the new Form 1040, Schedule 1, Additional Income and Adjustments to Income. The draft was shared in an email to tax software companies, which the agency also shared with journalists.
The sheet, prefaced by a warning that it’s only a draft and not an actual document for filing taxes, asks at the top:
“At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
The main parts of the form, “Additional Income” and “Adjustments to Income,” both appear below this question.
“Taxpayers who file Schedule 1 to report income or adjustments to income that can’t be entered directly on Form 1040 should check the appropriate box to answer the virtual currency question. Taxpayers do not need to file Schedule 1 if their answer to this question is NO and they do not have to file Schedule 1 for any other purpose,” the IRS said.
The IRS asked its software partners to send comments on the new form in the next 30 days.
The guidance released this week was the agency’s second-ever given on virtual currencies, following five years of silence on the matter. The document provided answers to long-standing questions, addressing such issues as crypto received as a result of a hard fork, buying goods and services with virtual currencies, calculating the fair value of crypto holdings and other matters.
Form 1040 image via Shutterstock
This is a reprinted article
2019 and the first few months of 2020 have been rough for XRP, with the embattled cryptocurrency losing over 40% of its value last year while currently trading down just a hair from where it started the new year at.This weakness simply marks an extension of that which was first incurred when the crypto lost the explosive momentum that pushed it to highs of just under $4.00 in early-2018, with its rise to this level being closely followed by an unprecedented decline.In spite of its weakness against both USD and BTC in the time following this crash, XRP is still outperforming Bitcoin over a macro timeframe.XRP Severely Underperforms Bitcoin Throughout 2019 and 2020The past couple of years haven’t been great for XRP, as the previously bullish token has been showing some extreme levels of weakness.In 2019, the token kicked off the year at $0.36, before seeing some choppy price action throughout the year that ultimately resulted in it declining to lows of $0.18 in December of 2019 – ending the year down just under 50%.This is in stark contrast to…Apr 20, 2020
2020 arrived with a bang this week, although the 100,000 revelers who paid for a ticket to the firework display in London complained that they didn’t see it because of the smoke… from the fireworks. Experts blamed a lack of wind, something that is sorely needed on the other side of the globe where too much wind is hampering efforts to control the unprecedented Australian bushfires. AS$20 million has been raised in just 48 hours to support our friends down under, and you can even donate bitcoin to the cause.Bitcoin Price: A Week Of Down And Then UpBitcoin seemed to be ending 2019 on a bit of a lull, started to get the January blues, and then picked up again just in time for the weekend.At $7400 early in the week, analysts suggested that the rangebound BTC price needed to break through $7800 to signal a new bullish trend.Price trickled down to $7.2k, but as the year drew to a close, it was hard not to see 95% overall gains in 2019 as a positive.Network fundamentals were also looking great,…Jan 5, 2020
By 2020, a large group of West African countries plan to adopt a single fiat currency called the eco. After a meeting in Abuja held on June 29 between the 15 member-country regional bloc, the implementation of a new single currency, after debating the monetary unit for years, was agreed. Despite the eco discussion and economic uncertainty within the massive continent, Africans still have a deep interest in digital currencies.15 West African Countries Plan to Introduce the Eco in 2020Right now a number of countries within the great continent of Africa are facing economic uncertainty and have issues with their sovereign issued currencies. This can be seen in regions that are suffering from hyperinflation like South Sudan and Zimbabwe but also in countries dealing with wavering monetary unpredictability. Some nations are having troubles with their sovereign issued tender and citizens tend to use multiple currencies like the CFA franc, euro or U.S. dollar for trade. On Saturday, the 15 member-country regional bloc called the Economic Community for West African States (ECOWAS) agreed to issue a new fiat currency called the eco. The single currency has been…Jul 3, 2019
In 18 days, the Bitcoin Cash (BCH) network will see its next halving as the block reward will decrease from 12.5 to 6.25 coins on or around April 8, 2020. BCH will be the first blockchain out of the top three SHA256 networks to halve as BSV will see a reward reduction two days after and BTC will halve 34 days later.Also read: US Cash Crisis: Withdrawal Limits Spark Bank Run FearThe Halving Draws NighEvery 210,000 blocks the Bitcoin Cash network experiences a block reward halving and the upcoming BCH halving will reduce the miner reward from 12.5 to 6.25 coins. In fact, all three of the top SHA256 blockchains (BTC, BCH, and BSV) will experience a reward halving during the next 50 days. Just before the BCH halving, cryptocurrency markets were hit hard by the economic turmoil surrounding the covid-19 virus that struck fear into global markets. For example, on February 15, BCH was trading for $498 per coin but has since lost 52% in value and is now swapping for $231. Twitter Facebook reddit Pinterest Hacker News LinkedIn…Mar 20, 2020
A lawsuit accuses the frontman of the TRON cryptocurrency and his business associate of harassing and firing two employees, allegedly as payback for the employees’ objections to management practices and applications of the technology they were developing.In a 70-page court document filed in October in California state, Richard Hall, 50, and Lukasz Juraszek, 28, said they put up with escalating hostilities on the job that culminated in their termination last summer from BitTorrent, a file-sharing service that combined with the TRON Foundation in a $120 million sale two years ago. The TRON Foundation is the main sponsor of the TRON cryptocurrency. Justin Sun, TRON Foundation’s 29-year-old founder and CEO, and Cong Li, 37, the head of engineering, are named together with the companies as defendants in the lawsuit, made public last week.According to the lawsuit, Sun berated Hall with derogatory exclamations to pressure him into fast-tracking BitTorrent software releases. On other occasions, Juraszek claimed, Sun slapped Li and was never disciplined for it, and Li appeared to have physically hit a manager whom he allegedly had a pattern of verbally…Jan 27, 2020
We thought long and hard about writing such article. 1984 has become a manual was on our mind, and we didn’t want to write another manual, yet as above so below, as in light so in darkness, and thus what follows is a complete product of imagination, and any resemblance to real events is a pure coincidence.The year is 2030 and a great story is being told in a corner of Las Resistance Des Codes where a night of parting had given way to this unique sitting around of drunken honesty.There had been a secret coup, the protagonist said. For 20 years neocons had moved to subvert all institutions across the globe through false flags of terrist attacks and the like to concentrate unquestionable power into the easily pickable “executive,” and so subvert any checks and balances by coopting the legislature, the judiciary, the media, and of course the civil service.The few that were aware in the mid-teens of this century moved to limit this drive for total control, but though they delayed it, they failed after trumped up charges…Nov 23, 2019
When using an online calculator to determine bitcoin calculator profit, you will need to input a start date, end date, your starting investment, and then the calculator will adjust for inflation. Trading in bitcoin can be much more volatile than other commodities, with no close in the market, so all potential investors should keep the relative instability of this digital currency in mind when viewing calculations.When using an online calculator to determine bitcoin calculator profit, you will need to input a start date, end date, your starting investment, and then the calculator will adjust for inflation. Trading in bitcoin can be much more volatile than other commodities, with no close in the market, so all potential investors should keep the relative instability of this digital currency in mind when viewing calculations.What is Bitcoin?Bitcoin is the largest cryptocurrency in the world and is traded peer-to-peer with no ties to any particular single bank.Bitcoin is a computer file Bitcoin is stored in digital wallets rather than banks Bitcoin can be traded between digital wallets or individuals Bitcoin transactions are recorded in a…May 13, 2020
Following Binance’s acquisition of CoinMarketCap, we have some great news for Changpeng Zhao: the silver medal is still worth winning.To celebrate the seventh anniversary of the platform’s launch, CoinMarketCap invited crypto industry participants to ‘roast them’ today. And we’re happy to oblige.@Cointelegraph: Since your writers never create any original content, wanna try your hand at being creative for once and roast us? #RoastCMC— CoinMarketCap (@CoinMarketCap) May 1, 2020We reviewed the numbers with Jonathan Chu, VP of Product at Blockfolio, to find out if CZ really bought the ‘top of the funnel’ — and at least one of the answers isn’t in CoinMarketCap’s favor.We’re #2 — so we’ll try harderChu shared internal documents with Cointelegraph that showed the number of page impressions on the Blockfolio app in the month of February. Although we were asked to keep absolute numbers out of this article, we were able to verify that while Blockfolio trails CMC in terms of unique users, it significantly outstrips the data company when it comes to impressions across both web and mobile app — often the first number that…May 2, 2020
The Bitcoin network hash rate has reached an all-time high at 126 quintillion hashes per second. By comparison, this time last year, the network was hashing at just 38 quintillion hashes per second.However, of more considerable significance is what this indicates. And that is a trend towards increasing miner confidence. As such, concerns over miner capitulation, in the run-up to the halving, show few signs of credibility. Bitcoin hash rate over 2 year period. (Source: bitinfocharts.com)Bitcoin Hash Rate Continues To Exceed ExpectationsFollowing Bitcoin’s stellar form of late, news of the network’s hash rate reaching another all-time high should come as no surprise. Over the weekend, the average daily hash rate peaked at 126 quintillion hashes per second. Putting paid to any notion that miners are cautious about the coming halving this May. Hash rate is a term that refers to processing power on the network. As Bitcoins get mined, transactions need to be “hashed” before being added on to the blockchain ledger.Every one of these hashes is created by successfully completing a complex mathematical puzzle. The hash rate is a…Jan 19, 2020
Barcelona has been in a downward spiral since the start of the year.The latest revelation from Eric Abidal triggered a direct response by Messi.Abidal may be fired, but the damage has already been done.Lionel Messi is not a very effusive man. He generally keeps himself to himself, so when he talks you know that everybody is listening.His public Instagram Story calling out Barcelona sporting director Eric Abidal confirms that FC Barcelona is now in full-blown crisis mode. Abidal Has Messed UpA lot of the chaos that has enveloped Barcelona this year seems to be connected to Eric Abidal. As sporting director, he was directly involved in the mess that was Valverde’s firingBefore Valverde was officially let go, Abidal took a meeting in Qatar with club legend, Xavi, where it is believed he offered the coach’s role to the ex-captain. Xavi rejected the job and Barcelona was left looking very bad. Valverde was eventually sacked and Quique Setien was brought in as his replacement. Apparently only after Ronald Koeman and Mauricio Pochettino also turned down the coach’s job.Somehow, Abidal kept his job…Feb 6, 2020