Tax forms have been updated to include a question about income from digital assets such as cryptocurrency. The question now appears at the top of various tax forms, including Forms 1040, 1041, 1065, 1120, and 1120S. Taxpayers must answer the question by checking either “Yes” or “No,” regardless of whether they engaged in digital asset transactions. The IRS has made crypto a priority due to its popularity and potential for hiding transactions. Taxpayers who answer “Yes” must report all income related to their digital asset transactions. Those who answer “No” can do so if they did not engage in any digital asset transactions during the year.
