The IRS reminded owners of digital assets about itself

The 2022 federal tax filing deadline is getting closer and closer. The Internal Revenue Service of the United States reminded the holders of crypto assets about themselves and published a list of requirements, according to which crypto reporting will have to be implemented.

According to the data sent by the US Internal Revenue Service, the owners of digital assets on which they managed to earn something must, without fail, understand the characteristics of income from these assets and put everything in three main forms:

• The first form, 1040, is a personal income tax return. Standard uniform for Americans.
• The second, 1040-SR, is the US Elderly Tax Return.
• The third form, 1040-NR, is a Non-U.S. Alien Income Tax Return.

The only case when US residents should not report on income is when they hold funds on the exchange and have not yet fixed their profit by withdrawing to a card, and also transfer their funds within an account on a cryptocurrency platform.

In other cases, namely when cryptocurrencies are received, earned, transferred, sold, mined and staked, then residents are required to report on the funds earned.

It is noteworthy that before the massive crypto boom in 2021, the IRS used the term “virtual currencies” in reporting format that were associated with the world of crypto and income tax. Later, it was decided to replace the term “virtual currencies” with “digital assets”. At the moment, the market capitalization of the cryptocurrency industry is $1,087,000,000,000.