2020 Form 1040 Virtual Currency Question
Taxpayers who own virtual currency, also known as “cryptocurrency,” may be confused about how to respond to a question on the 2020 Form 1040, U.S. Individual Tax Return, now due May 17, 2021 (extended from April 15, 2021). The IRS recently clarified part of the question, but did not answer all the questions taxpayers have about the inquiry, nor how the IRS will use taxpayer responses for enforcement purposes. The 2019 Form 1040 was the first time any question was …