Dear ,
Earlier in the year, I reminded my followers that the time to evade taxes on cryptocurrency was over. The IRS now requires you to report any virtual currency transactions on your tax return, starting in 2021. This means that the requirement begins during this ongoing tax season.
Therefore, this is another reminder from the IRS that you must check the box on the first page of your Form 1040, 1040-SR, or 1040-NR on virtual currency transactions for 2021. Checking this box will let the IRS know if you transacted in any virtual currency
or not.
Below is some further information from the IRS about the virtual currency checkbox on your federal return forms.
Check “yes” if:
- You sold virtual currency
- You received payments for goods, or a service provided in virtual currency
- You received virtual currency from mining and staking activities
- You exchanged virtual currency for property, goods, or services
Call me at (202) 618-1297 if you have any more questions about this. This is important as it affects your 2021 federal tax return. If you have already filed and made a mistake on this part, contact me, and ask about filing an amended
return.