Cryptocurrency owners, beware: The IRS is trying to strip away excuses for millions of people who aren’t complying with the tax rules on them, either inadvertently or on purpose.
The agency has put a pointed question on the front page of the Form 1040, just below the taxpayer name and address. It first appeared on the 2019 tax return in a less prominent position and moved to its current place on the 2020 return.
On the 2021 return, the question has been reworded slightly: At any time during 2021, did you receive, sell, exchange or otherwise dispose of any financial interest in any virtual currency?
The tax filer must check the box “Yes” or “No.” Cryptocurrency owners who don’t answer the question or are untruthful risk higher penalties if the IRS audits them, as it will be hard to claim ignorance of the…
