In the new version of the tax return, the wording has been changed, which is why now the document needs to indicate only those transactions with digital assets that are taxed.
The IRS has changed the process for declaring income from cryptocurrency transactions, Bloomberg reports .
According to the publication, in the new version of the 1040 form for 2021, the wording of the question of the presence of cryptocurrency transactions was clarified.
In the draft tax return, the wording “acquire in another way” was changed to “dispose of in another way” and the word “send” was deleted.
Evan Fox, chief tax officer at Marcum consulting firm, believes the changes to the tax return will make it easier to declare cryptocurrency income.
According to Fox, the changes will allow not disclosing information about transactions in cases where the holder already owns the cryptocurrency, but simply transfers it to another exchange or wallet for security purposes.
A similar opinion was expressed by Shekhan Chandrasekera , head of tax strategy at CoinTracker and columnist for Forbes.
According to him, the changes in the tax return show that the IRS only wants to know about those transactions that are taxed.
2021 question: "At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in VC?" pic.twitter.com/XeqKvfgy7E
— Shehan 🧗♀️|🇺🇲|🇱🇰 (@TheCryptoCPA) July 22, 2021
Digital asset ownership first appeared on the IRS tax return in 2018. The IRS announced back in 2014 that it plans to tax cryptocurrency transactions.
In May, the US Treasury proposed to the administration of President Joe Biden to introduce an obligation to transfer information about crypto transactions in excess of $ 10 thousand to the Internal Revenue Service (IRS).
The country’s authorities have called cryptocurrencies a problem that contributes to illegal activities, including tax evasion.
