US Cryptocurrency Transactions Reporting
With cryptocurrency transactions becoming more mainstream, the IRS has shown a renewed focus with the issuance of new guidance. This includes Revenue Ruling 2019-24 and frequently asked questions to supplement Notice 2014-21 issued several years ago. As a result, more guidance now exists on issues such as whether a tax payer has gross income under § 61 of the Internal Revenue Code as a result of a hard fork of a cryptocurrency a taxpayer owns if the taxpayer does not receive units of a new cryptocurrency, or whether income arises as a result of an airdrop of a new cryptocurrency following a hard fork.
In addition, individuals filing a US individual income tax return must indicate whether they received, sold, sent, exchanged, or otherwise acquired a financial interest in any virtual currency.