In a new ruling, more guidance will be given to individuals on how to report income from their cryptocurrency. The guidance that has been released applies tax rules to cryptocurrency investments. Among these rules, taxpayers must track how much they bought in cryptocurrency so it can be determined how much tax is owed when they sell coins. They must also document the transfer of coins between accounts to provide support for the transaction.
The IRS is stepping up inforcement of cyrptocurrency transactions by sending letters notifying individuals that the IRS has information pertaining to cryptocurrency transactions related to their tax account. These individuals have been instructed that they should submit additional information for prior periods in support of these transactions.
As a result of these changes, it can be expected that more people will seek tax help on their investments. For more information visit https://www.accountingtoday.com/articles/cryptocurrency-investors-get-new-irs-income-reporting-rules