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IRS Increasing Tax Enforcement for Cryptocurrencies Alert

Posted by Admin Posted on Nov 26 2019

A few weeks ago, the IRS released a draft of the new 1040 Schedule 1 form for the upcoming 2019 tax season.  Taxpayers will now be required to check ‘yes’ or ‘no’ to the very first question on this new tax form:

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

What does this mean?

This means that ALL taxpayers must now inform their tax preparer whether they have any cryptocurrency (virtual currency) related activities during the year.

Labenz & Associates LLC will add a question to our tax organizers requesting whether or not our clients participated in any cryptocurrency transactions during 2019.  If yes, information will need to be provided to report these cryptocurrency transactions.