The IRS has filed amendments to Form 1040 to file income statements for individuals. The updated declaration requires residents of the country to report on the receipt of coins as a result of hard forks.
The tax is imposed on the exchange of cryptocurrencies for goods, services or "other property, including another virtual currency." But a resident does not need to report ownership of a cryptocurrency if he has not traded it during 2020.
The IRS is not interested in transfers of digital assets between taxpayer wallets. CoinTracker spokeswoman Shehan Chandrasekhar noted that transactions that affect tax liabilities are important for the department.
“At the moment, the IRS does not seem to be interested in the volume of cryptoassets stored by users. You are not required to disclose information about them anywhere, if there were no taxable transactions, ”explained Chandrasekhar.
Recall that in August, the agency demanded that all US residents report any transactions with bitcoin and other cryptocurrencies on the first page of an individual tax return.