Crypto Question on Income Tax Form May Not Be Easy to Answer (1)

The IRS’s enforcement of cryptocurrency tax dodging appears to be going mainstream, with a yes-or-no question on virtual currency trades now on the front page of its draft 2020 individual tax form.

The answers to that question aren’t so simple, given gaps in IRS guidance for what the agency considers virtual currency, as well as what it considers to be an event triggering tax liability, according to tax professionals who specialize in this area.

“While it seems like a really straightforward question, there’s actually a lot of nuance around it,” said Chandan Lodha, co-founder of the cryptocurrency portfolio and tax ...