10/25/22 IRS Updates Crypto-Related Instructions for 2022

10/25/22 IRS Updates Crypto-Related Instructions for 2022: Contents

IRS Updates Crypto-Related Instructions for 2022

The Internal Revenue Service (IRS) released its 2022 draft instructions for tax form 1040 last week. Form 1040 is the tax form used for filing individual income tax returns in the U.S. The new instructions contain several changes relating to cryptocurrency.

The section titled “Virtual Currency” has been replaced with one titled “Digital Assets.” The IRS detailed:

Digital assets are any digital representations of value that are recorded on a cryptographically secured distributed ledger or any similar technology. For example, digital assets include non-fungible tokens (NFTs) and virtual currencies, such as cryptocurrencies and stablecoins.

In contrast, NFTs and stablecoins were not mentioned in the 2021 instructions for tax form 1040.

The instructions explain that taxpayers must check the “Yes” box next to the question on digital assets on page 1 of the tax form 1040 if at any time during 2022, they “received (as a reward, award, or payment for property or services)” or “sold, exchanged, gifted, or otherwise disposed of a digital asset (or any financial interest in any digital asset).”

Click here to read the article: 

IRS Updates Crypto-Related Instructions for 2022 Tax Filing – Taxes Bitcoin News

en_USEnglish
Skip to content