IRS Resolves Queries On Virtual Currency Question

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On Oct 23, 2020, the IRS released instructions to the draft 2020 Form 1040 which contains the infamous virtual currency question ᠆᠆ At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in virtual currency? ᠆᠆ on the front page.

According to the newly released draft instructions, taxpayers aren’t required to check “yes” for the crypto question, if they only held cryptocurrency or transferred them between wallets they own during 2020. 

“A transaction involving virtual currency does not include the holding of virtual currency in a wallet or account, or the transfer of virtual currency from one wallet or account you own or control to another that you own or control” 

On Oct 23, 2020, the IRS released instructions to the draft 2020 Form 1040 which contains the infamous virtual currency question ᠆᠆ At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in virtual currency? ᠆᠆ on the front page.

According to the newly released draft instructions, taxpayers aren’t required to check “yes” for the crypto question, if they only held cryptocurrency or transferred them between wallets they own during 2020. 

“A transaction involving virtual currency does not include the holding of virtual currency in a wallet or account, or the transfer of virtual currency from one wallet or account you own or control to another that you own or control”