The IRS has given US cryptocurrency holders a bit more clarity about how to report digital assets on their 1040 income tax forms, a likely precursor to regulatory guidance.
In 2022 tax form draft instructions released late Monday, the Internal Revenue Service expanded how taxpayers should list their crypto transactions, including switching the verbiage from “virtual currency” to “digital assets.”
“They’re being a little more attuned to the terminology of the industry and being more inclusive of potential crypto transactions,” said Adnan Islam, tax partner with Marcum LLP.
The additional clarity is welcome, tax professionals ...