{"id":135383,"date":"2020-12-17T05:02:43","date_gmt":"2020-12-17T02:02:43","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/irs-tax-form-question-leaves-us-crypto-users-confused-and-concerned\/"},"modified":"2020-12-17T05:02:43","modified_gmt":"2020-12-17T02:02:43","slug":"irs-tax-form-question-leaves-us-crypto-users-confused-and-concerned","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/irs-tax-form-question-leaves-us-crypto-users-confused-and-concerned\/","title":{"rendered":"# IRS tax form question leaves US crypto users confused and concerned"},"content":{"rendered":"

“# IRS tax form question leaves US crypto users confused and concerned <\/strong>”
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Crypto users in the U.S. have taken to Twitter<\/a> to express their confusion and frustration over the wording of a question about virtual currencies on this year\u2019s tax return form.<\/p>\n

On Dec. 11, the IRS published<\/a> a new Form 1040 return for the 2020 tax year which needs to be filed by all U.S. taxpayers. It contains the following question:<\/p>\n

\u201cAt any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?\u201d<\/p><\/blockquote>\n

The virtual currency question is similar to one that first app<\/a>eared on the 2019 form, but has this year been placed much more prominently near the top of the form. It must be answered by everyone filing a tax return honestly under the penalty of perjury,<\/p>\n

The question was likened<\/a> to a trap by accountant Ryan Losi, the vice president of the PIASCIK tax firm. \u201cThe IRS is just gathering the data, changing the forms to expressly say you did or didn\u2019t, and setting the trap, so in the coming years, the hammer can come down,\u201d he told Yahoo. <\/p>\n

The lack of explicit guidance on the definition of \u201cvirtual currency\u201d left some crypto users perplexed<\/a>. Timothy Peterson, Investment Manager from Cane Island Global Macro asked ” If you check “no” are you committing perjury since it’s not defined?”<\/p>\n

Others wondered<\/a> if their crypto-related actions were accurately described in the list of actions asked in the question. One crypto tax specialist likened the question to a ‘perjury trap’.<\/p>\n

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If you answer the virtual currency question falsely, you could be charged with perjury. <\/p>\n

Lawyers call this a \u201cperjury trap.\u201d<\/p>\n

Most feel the IRS has not provided adequate guidance for taxpayers to know how to report their crypto income, especially in light of DeFi innovations. pic.twitter.com\/djzzfRUJUb<\/a><\/p>\n

\u2014 Clinton Donnelly (@CryptoTaxFixer) December 16, 2020<\/a><\/p><\/blockquote>\n