Posted on 10/12/2019 8:02:32 PM PDT by ameribbean expat
The Internal Revenue Service (IRS) has updated the main form individual U.S. taxpayers use to report their income to include a question about cryptocurrencies.
Following the release earlier this week of the IRS’s long-awaited guidance for reporting crypto-related income, the IRS on Friday circulated a draft of the new Form 1040, Schedule 1, Additional Income and Adjustments to Income. The draft was shared in an email to tax software companies, which the agency also shared with journalists.
The sheet, prefaced by a warning that it’s only a draft and not an actual document for filing taxes, asks at the top:
“At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
(Excerpt) Read more at coindesk.com ...
“What am I missing?”
1. It is still a draft so they are not ‘now’ asking you.
2. 1040 Schedule 1 is NOT the most widely used form.
Are you saying it’s tales from the crypto?
Schedule 1 required if any virtual currency transaction therefore all clients need to be asked question
Draft given to software companies means almost done deal as far as irs is concerned. Programmers need to have initial software ready in about 4 weeks. We start preparing our questions for clients in December for mailing early Jan.
Sure. Cryptosporidium. I’ll be sure to give you a stool sample.
I take it your answer to those questions would be “Yes”?
If the answer is yes and taxpayer either lies or leaves blank the irs will argue that the return is incomplete and that the 3 year statute of limitations will not run. Further, a yes answer for 2019 means likely audits for prior year returns. This opens a real can of worms.
My hunch is that what you’re missing is that Gator probably owns some cryptos and news like this could send them crashing down. But it’s just a hunch.
Yep! IMHO, much rather have my "stash" of Cipro than any Crypto...
Yep. If this change goes through, you may want to short the cryptos. Their biggest selling point is anonymity, but the government can always find out if you own any through the threat and use of force.
I’m sure that if the government discovers that you lied answering that question it can make your life miserable, just like they can if you have an undisclosed offshore bank account.
I always thought that the crypto claim of anonymity was bogus precisely because of this leverage government has over you.
IRS says BTC is a commodity...so the answer to “buy/sell/exchange virtual currency” will always be “No”.
In any case practice “safe crypto” by not ever tying your name/ID to any of your private keys, and if you did use an exchange that ID’ed you, use “Wasabi Wallet” to clean up. An in the future use “Bisq” to buy and sell.
Might want to send your stash to the President to help rout out the infection of the Deep State..
That's not correct.
Here is the direct link from the IRS itself:
Lie about your "crypto" currency, and people face severe consequences:
“At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”
See this sentence. This is the IRS way of issuing a warning for non-compliance:
"The IRS is aware that some taxpayers with virtual currency transactions may have failed to report income and pay the resulting tax or did not report their transactions properly. The IRS is actively addressing potential non-compliance in this area through a variety of efforts, ranging from taxpayer education to audits to criminal investigations."
Be careful with crypto. New superconductor makes a Quantum Computer processors with no modifications. We had already reached Quantum Supremacy before that. ( https://en.wikipedia.org/wiki/Quantum_supremacy ) Won’t be long and all crypto will be crackable and worthless. Crypto is scrambling with schemes to protect crackability but I don’t have confidence in any of the schemes.
Re: Cipro, I am allergic to it. That whole family. It is why my stash consists of tyvek suits, n95 respirators, lab goggles, tyvek head covers, duct tape, rubber boots, nitrile gloves, bleach, iodaphor, pump sprayers, etc. (Full bio suit and needed accesories)
Ever since they got a list of currency ownership from Coinbase a few years ago, their interest has ratcheted up.
Several issues still remain. The IRS treats crypto as an investment, the SEC treats it as currency.
But with the Treasury's emphasis on FBAR and FINCen 114 reporting, any crypto that uses a foreign trading center may be in violation of a bunch of rules that only expats have dealt with. Not fun at all.
We all know that it's coming.
Me:Two false facts in the first sentence. Delete this garbage.
You:That’s not correct.
I am correct. YOU ARE WRONG!
1. It is only a draft
2. It is NOT THE MAIN FORM! It is 1040 SCHEDULE 1.
The Internal Revenue Service (IRS) has updated the main form individual U.S. taxpayers use to report their income to include a question about cryptocurrencies.
“My hunch “
Sal says when you can’t fight the facts Attack the messenger.
Have you been asking clients if the use Crypto currencies the last four years?
“The IRS has been trying to wrap its hands around cryptocurrency for several years.”
Yes. All that is new is the specific question.
Nope, not directly. Probably should have. I try to limit questions to general areas to have no more than one page of questions that are designed to give us a jumping off point to ask more detailed questions. I use two general questions about sale of assets and another on miscellaneous income.
The only time I dealt directly on this issue was a potential client who wanted to know what to do with past years. He never hired me . I always had suspicion that person was testing me because I think he was recording our discussions and tried getting me to filing in a way that is not correct. He also had excuse for not using a tax attorney I advised him to use because of possible criminal issues.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.