US IRS Updated Guidelines for Reporting Cryptocurrency Transactions

Tax service (IRS) The United States has amended the form of reporting by taxpayers. Coins obtained during hard forces are taxed, but the translations between wallets do not need to be disclosed.

In the latest version of the form 1040 for tax reporting The income of individuals IRS has made clarity regarding that, Information about what crypto actes and transactions must be disclosed. According to new principles, If the user only owned cryptocurrency, but did not trade it for 2020 of the year, then he can answer "no" to the question about trade, selling or receiving crypto assets in another way.

The updated recommendations provide specific examples of cases, which fall under receipt, sales, Sending and exchange of cryptocurrencies. Cryptoactives, received free of charge during hardcore, are considered taxable assets. Like the exchange of cryptocurrencies for goods, services or "other property, including another virtual currency ".

"Translation of crypto assets between wallets, eg, Transfer of money to exchange and back, It is considered a translation for administrative purposes ", - said the head of the tax strategy of Cointracker, Sheshkhuskara (Shehan chandrasekara).

In this way, Users may not report translations between personal wallets, since this is not a sale, Exchange or purchase of crypto assets. At the same time, Chandrakara noted, that the IRS approach has not changed, But rather, clarity is introduced into it:

“IRS simply clarified the taxation of crypto assets in the next. It shows, that for IRS the transaction, which are reflected in the tax reporting. At the moment the tax service, it seems, Not interested in the volume of crypto assets stored by users. You are not required to disclose information about them somewhere, If the taxable operations have not been performed ".

Recall, that last fall, the US tax service added a item about cryptocurrencies to the form 1040. In February of this year, IRS updated the definition of virtual currency on its website. Game tokens were excluded in the new version - since then they are not subject to declaration in tax reports.