Date: 9/28/2020
Practitioners say the IRS’s proposal to move the virtual currency checkbox to the Form 1040 itself is a good move, but they wonder why the agency didn’t also change the wording of the question.
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Moving the question to Form 1040 “certainly gives it front-page visibility,” said Zhanna A. Ziering of Caplin & Drysdale. “It also avoids the issue of taxpayers not required to file Schedule 1 missing the question.”
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Ziering said she hopes more clarity will be provided in the instructions to Form 1040. She noted that last year’s instructions to Schedule 1 didn’t define “financial interest” or explain what it means to acquire a financial interest in virtual currency.
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