Cryptocurrency Investors Get New IRS Income-Reporting Rules

Cryptocurrency holders know more about what the Internal Revenue Service expects to see on their tax returns, thanks to new guidance from the agency.

The IRS released a ruling (Rev. Rul. 2019-24) and a question-and-answer document Oct. 9 that tell virtual currency investors and their tax advisers how the agency expects them to report income from their holdings. The guidance is the first since 2014 and comes as tax auditors are increasingly focusing on examining individuals with cryptocurrency investments.

“It’s going to encourage people who weren’t in compliance to come into compliance,” said James Creech, a tax lawyer in San ...