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.
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.
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?