Update in paying taxes from cryptocurrencies

By manuabb1 | cryptofinance | 6 Mar 2021

Investors who have bought cryptocurrencies with fiat money do not need to inform the US Internal Revenue Service (IRS) about their history of business operations in the "virtual currency" question.

With this measure, Form 1040 allows US residents to use a provision called "buy and hold cryptocurrencies" to avoid filing, the website reported.

On December 31, 2020, the IRS amended tax form 1040, used by approximately 150 million people to declare personal property and cryptocurrencies in the US as reported by Morocotacoin.

The declaration form asked: "At any time during 2020, did you receive, sell, send, exchange or in any way acquire any financial interest in any virtual currency?"

On that occasion, experts from the cryptocurrency ecosystem questioned the new regulations of the United States Internal Revenue Service.

Blockchain and Digital Currency Practice CEO Justin Wales this week rejected IRS filing for crypto. "Reporting our digital assets to the IRS is as inappropriate as asking for all email addresses, social media accounts, or service plans," he said.

Other experts in tax administration indicated that form 1040, published last December 11, should be clarified in greater detail.

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