Tax
Mar. 26, 2024
The surprisingly important ‘yes or no’ question about crypto on your tax return
Answering yes or no to the IRS question can have significant consequences, as a false or misleading answer could expose the taxpayer to penalties or criminal charges, and the IRS is sharing data and strategies with other countries to find potential crypto tax evasion.
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Robert W. Wood
Managing Partner, Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
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The IRS is asking everyone about crypto transactions, and a yes or no question can be surprisingly important. The IRS asks this question with variations for corporations, partnerships, and estates and trusts:
“At any time during 2023, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?” Yes or No?
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