The IRS, the US tax service, has just clarified the procedure to be followed by users in relation to cryptocurrencies when filing their tax returns. When reporting on the current year, US citizens must report "whether they have received any financial interest in any virtual currency."
The IRS has clarified taxpayers must answer yes to this question if they have sold cryptos, exchanged them for goods, services or property. The same answer must be provided if the cryptos have been received for free, for example, through an airdrop or as a result of a hard fork. However, US residents should answer no if they simply hold a crypto or have made transfers between their own wallets.
The IRS has emphasized the requirements described above will take effect unless "unexpected issues arise" or a new legislation is passed.
The IRS has so far refused to clarify the issue of crypto taxation, sending instead letters to crypto owners reminding them they might have forgotten to report certain taxes or that their return is incorrect.
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