The IRS updated its tax form and includes both those who made investments with cryptocurrencies and those who participate in the Gig economy.
The US Internal Revenue Service (IRS) updated its 1040 tax form, which focuses on additional income. It will now include a check box for crypto trading that asks:
“At any time during 2019, did you receive, sell, send, exchange or acquire any financial interest in any virtual currency?”
By clearly including this new check box, at the top of the form, “it seems that the US tax agency does not leave stone without moving in the fight against cryptographic tax evasion. One of the likely implications of the newly added question is that crypto merchants can no longer claim ignorance. ”
If a crypto owner was caught evading taxes in Bitcoin, the IRS can now prove intentional criminal intentions. Therefore, the owners and traders of virtual currency of the United States must declare with precision their tax obligations of cryptocurrencies or the accusation of risk of tax fraud.
Cryptocurrencies on the IRS form
The recently published document “Interal Revenue Service Progress Update”, has a separate section that deals with two issues, previously ignored: cryptocurrency owners and workers of the so-called “Gig Economy”.
https://www.irs.gov/pub/irs-pdf/p5382.pdf?mod=article_inline click here to see the full document.
IRS similar to Brazil
This latest IRS movement echoes a similar strategy of the Brazilian tax agency. The latter created a special penalty code for crypto tax evaders. In recent times, the IRS has intensified its efforts to ensure an accurate statement of the gains and losses related to crypto.