- There’s a key question about cryptocurrency on the front page of your tax return this season.
- You need to answer yes if you sold, exchanged, mined or made purchases with digital currency.
- If you don’t report taxable transactions and face an IRS audit, you may incur interest, penalties or even criminal charges, experts say.
If you’re one of the millions of Americans who own cryptocurrency, there’s a key question to answer this tax season.
Over the past couple of years, the IRS has stepped up crypto reporting with a yes-or-no question about “virtual currency” on the front page of your tax return.
The question reads: “At any time during 2021, did you receive, sell, exchange or otherwise dispose of any virtual currency?”
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