IRS Alerts Taxpayers They Must Answer a New Question on Tax Forms or Face Consequences – IOTW Report

IRS Alerts Taxpayers They Must Answer a New Question on Tax Forms or Face Consequences

Epoch Times:
The Internal Revenue Service (IRS) issued an alert to taxpayers on Tuesday, reminding them that they must report all digital asset-related income and answer a new digital asset question on their 2022 federal income tax return or face consequences such as delayed refunds or even penalties.

The IRS said in a Jan. 24 release that a key change on 1040 forms this year is that the agency has replaced the term “virtual currency” with “digital assets,” in addition to some other modifications to the wording.

The “Yes” or “No” question, which was expanded and revised this year to update terminology, reads as follows:

“At any time during 2022, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, gift or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”

The question appears at the top of tax forms 1040, Individual Income Tax Return1040-SR, U.S. Tax Return for Seniors; and 1040-NR, U.S. Nonresident Alien Income Tax Return.
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17 Comments on IRS Alerts Taxpayers They Must Answer a New Question on Tax Forms or Face Consequences

  1. Does not apply to members of Congress engaged in money laundering.

    The IRS does likes its forms. If you answer yer to the new question, you have to fill out another form. Don’t be surprised if, in order to complete the second form, you have to fill in another form.

    18
  2. Gee Thanks Dana Perino on FOX News for promoting kryptocash.
    Now every parent is responsible for those ‘Tokens’ that DO have a CA$H Value.

    Even thought it is your kids stuff, you gotta pay the tax.
    Or else.

    2
  3. Will the Biden Administratration, through the IRS, allow us to deduct the financial losses incurred due to increased cost of goods, services, taxes and the inflation “they” created.

    Seems fair, I mean gamblers can deduct their losses as well as others.
    Our individual and families’ losses are real, as are for all citizens, rich or poor.

    5
  4. Better Question:

    At any time did you Aid and Abet the Laundering of Assets through FTX & SBF Via the Ukraine and back Towards the Democrat Party of The United States with 10% going to “the Big Dumb Guy”

    9
  5. Wait…..I thought the whole idea behind blockchain technology was security and privacy. So until you squeal on yourself to the FedGov, how are they going to know if you just say “NO”?
    Sounds like a bad remake of those 1980s anti-drug ads, “Just say NO!”

    Let’s see now……computers are digital…..and they’re an asset. Stick “computers” into that top paragraph, replacing “digital assets”. See how silly it reads. So maybe you could say “YES” to the new IRS overreach after all, and still not get into financial trouble.

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