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You see, Uncle Sam wants to know what you’re up to and if you owe any taxes on your crypto activities.
The IRS starts to satisfy its curiosity right at the top of your Form 1040. That’s where they ask:
“At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?”
Actually, this is a trick question.
The way the question is worded, it’s easy to provide the incorrect answer.
If you answer “yes” when the answer should be “no,” or vise versa, you could wind up in trouble with the IRS.
We’ll help you answer the trick question correctly.
- We’ll tell you the eight times you should answer “yes.”
- And we’ll tell you the three times you should answer “no.”
Once again, let me stress that how you respond to the IRS’s sloppy, ambiguous, and tricky question is vitally important.
If you want to handle things properly and stay on the right side of the IRS…
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The IRS Wants to Know about Your Crypto