From IRS Newswire
Revised 2019 Form 1040 includes virtual currency questions
Using feedback from taxpayers and the tax professional community, IRS revised the Form 1040, U.S. Individual Income Tax Return, for tax year 2019. Taxpayers will use fewer schedules to supplement the base Form 1040 as six schedules were consolidated into three numbered schedules.
In 2019, taxpayers who engaged in a transaction involving virtual currency will need to file Schedule 1, Additional Income and Adjustments To Income.
The Internal Revenue Code and regulations require taxpayers to maintain records that support the information provided on tax returns. Taxpayers should maintain, for example, records documenting receipts, sales, exchanges or other dispositions of virtual currency and the fair market value of the virtual currency.
“Virtual currency is an important addition to the 1040 this year,” Rettig said. “This emerging area is a priority for the IRS, and we want to help taxpayers understand their obligations involving virtual currency.
We will also take steps to ensure fair enforcement of the tax laws for those who don’t follow the rules involving virtual currency.”