The IRS proposed an amended draft of the 2019 Form 1040
that includes a question about taxpayer virtual currency
transactions.
As
previously covered, the IRS provided updated guidance in the form of a revenue ruling and an FAQ on the tax treatment of virtual currency
transactions. The FAQ addressed (i) when a cryptocurrency on a
distributed ledger undergoes a protocol change that permanently
divides the legacy from the existing distributed ledger
(i.e., a "hard fork") and (ii) when units of a
cryptocurrency are delivered to the distributed ledger addresses of
multiple taxpayers (i.e., an "airdrop"),
typically following a hard fork.
The IRS proposed adding the following question to the 2019 Form
1040: "At any time during 2019, did you receive, sell, send,
exchange, or otherwise acquire any financial interest in any
virtual currency?"
