Virtual Currency Question on IRS 1040 Form

Virtual Currency Question on IRS 1040 Form

The IRS reminds all taxpayers that they must answer the virtual currency question on Form 1040, 1040-SR, or 1040-NR, when contained on the form. If one sells or exchanges virtual currency or uses it to pay for goods or services or hold it as an investment, there may eventually be tax consequences that could result in tax liability due to a gain realized (capital gains tax).

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