Virtual Currency Question Needs Clarification, CPA Group Says

The IRS should clarify the meaning of virtual currency on the Form 1040, the American Institute of CPAs said in a comment letter released Friday.

AICPA urged the IRS to modify virtual currency question for “simplicity and clarity.”

• The agency also should not ask about “digital assets” until it has been defined under tax code Section 6045, the letter said.
• AICPA said the IRS should include elements such as providing examples of taxable and nontaxable events for the virtual currency question in the Form 1040 instructions.
• The CPA group recommended the agency specify that a taxpayer is not ...