29.03.2024

US IRS Add Question on Crypto Usage to New Income Tax Form Draft

Cointelegraph previously reported that the IRS had issued new guidelines for tax reporting on cryptocurrency airdrops and hard forks. The tax agency’s guidance answered questions about cryptocurrency transmissions for investors that hold cryptocurrencies as a capital asset and set general principles of tax law to determine that virtual currency is property for federal tax purposes.

The United States Internal Revenue Service (IRS) has added a question on crypto ownership to the standard 1040 income tax form for the coming tax season.

On Oct. 11, a draft of the “Additional Income and Adjustments to Income” section of the new 1040 form surfaced that included a change was made to the ‘Additional Income and Adjustments to Income’ section.

IRS wants to know about your crypto in 2019

On the new 1040 form, the additional question reads:

“At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”

The question expects a straightforward yes or no, with no additional details requested.

HR Block helps with crypto taxes

Cointelegraph reported in September that United States-based accounting firm HR Block started acting as an intermediary between crypto users and the IRS after the agency began sending letters to crypto traders who may have failed to report income and pay taxes.

HR Block can now assist people who have engaged in digital currency transactions, specifically providing consultations on how to properly file their cryptocurrency gains and losses on tax returns.

US SEC, FinCEN, CFTC Jointly Warn Against Illicit Use of Crypto Assets

The chairmen of the three primary financial regulators in the United States have released a joint statement warning crypto users of anti-money laundering (AML) and countering the financing of terrorism (CFT) obligations.

All for one, one for all

The statement, published Oct. 11, is a rare instance of joint action from the Commodity Futures Trading Commission (CFTC), the Financial Crimes Enforcement Network (FinCEN) and the Securities and Exchange Commission (SEC).

In the statement, the regulators remind those involved in the crypto trade of their reporting obligations under the Bank Secrecy Act, specifically relating to illicit use of crypto, which has been a priority for regulators recently. Regarding AML and CFT law, the statement reads:

“Among those AML/CFT obligations are the requirement to establish and implement an effective anti-money laundering program (AML Program) and recordkeeping and reporting requirements, including suspicious activity reporting (SAR) requirements.”

Signatories to the statement were Chairman of the CFTC Heath Tarbert, FinCEN Director Kenneth A. Blanco, and SEC Chairman Jay Clayton.

Recent U.S. regulator action

On Oct. 10, Heath Tarbert said at a conference that he considered Ether (ETH) a security, and predicted ETH futures trading coming soon.

Also on Oct. 10, the SEC rejected Bitwise’s proposed Bitcoin exchange-traded fund. An ongoing race to be the first BTC ETF permitted by U.S. regulators has yet to see a winner.

Earlier today, Oct. 11, a draft of the IRS’s new questions 1040 form for this fiscal year surfaced, revealing a new duty to report crypto assets:

“At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”

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