The IRS includes crypto and NFT questions on Form 1040, requiring taxpayers to report crypto and digital asset activities.
Whether you trade or dabble in cryptocurrency or NFTs, the IRS wants to know. Form 1040, used by most people to file tax returns, asks if you've received crypto or digital assets or if you've sold, exchanged, or disposed of them. The IRS defines digital assets as records of value secured on a distributed ledger, such as crypto, stablecoins, and NFTs. If you've had any crypto or digital asset activity, it's essential to report it, as failure to do so may lead to penalties.
March 29, 2024
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