The IRS is stepping up its scrutiny of cryptocurrency. If you've traded or sold crypto, answer "yes" to the "digital assets" question on your tax return. Holding crypto for over a year can qualify you for lower capital gains tax rates. However, reporting crypto taxes can be tricky due to inconsistent or missing forms. Use personal records and seek professional help if needed. The IRS plans to introduce a standardized reporting form for digital assets in 2025.
The IRS is bolstering its digital currency monitoring with former crypto experts, signaling increased scrutiny for tax professionals. The agency is pursuing investigations related to unreported crypto income and gathering data through tax return questions. Upcoming regulations aim to enhance reporting in 2025, while inconsistent reporting methods persist. Taxpayers should expect heightened examination of their crypto activities as the IRS intensifies its efforts to regulate the industry.
