The US Tax Administration (IRS) included an interesting question about digital money in its form for this year’s tax period. In this form, which is expected to be filled out completely by citizens, investors are asked whether they have purchased digital money or not.
The IRS has published the 1040 Form it has prepared for this year’s tax period. A small change drew attention to the form prepared by the IRS specifically for this year. Citizens were first asked in 2019, “Did you buy and sell digital money?” The question was normally included in the First Part of the form. However, the IRS made a change and decided to move this question to the first page of the form.
Why Is This Small Change Important?
There are several different parts in the tax form prepared by the IRS, and these parts concern different investor groups. The questions in the first part are prepared for investors who earn income in different ways in addition to W-2. This part is filled not by every citizen, but only by investors who have to submit an additional income statement.
“Did you buy and sell digital currency?” The US Tax Office first started asking last year. The question was normally in this Part One, and therefore not everyone had to answer this question. However, the IRS has decided to move this question to the first page in its draft form for this year’s tax period. Unlike the questions in the first part, everyone has to answer the questions on the first page. Therefore, the IRS’s “Did you buy and sell digital money in any way in 2020?” Every citizen may have to answer the question.
What Is The IRS Trying To Do?
It is unknown why the US Tax Office carried the digital money question to the first page. The IRS has not made an official statement on this issue yet. However, this move of the IRS attracted the attention of the investment world, especially the cryptocurrency community.
Commenting on this change by the IRS, some people say that the IRS is trying to collect as much data as possible on digital currency. However, it is not yet known what decision the IRS will make in the light of the findings.