The American tax preparation company, H&R Block (HRB), has urged it’s tax customers dealing with cryptocurrencies to comply with the United States Internal Revenue Service (IRS) request for reporting virtual currency transactions.
IRS is asking anyone who made (or lost) money last year from selling digital currencies to disclose it in the form provided for listing additional income (i.e., Form 1040), as the tax agency will start accepting tax returns from January 27.
According to a recent report by Finance Yahoo, the tax agency, IRS also added a new question this year to the top of Form 1040 which states: “At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?”
Many people who dealt with cryptocurrencies over the past few years weren’t able to comprehend the process of crypto tax reports, as such, they developed the attitude that crypto gains or losses on taxes could possibly be ignored.
In this course, however, the IRS sent a supposed “educational letters” last year to at least 10,000 taxpayers who might have refused or not able to report they’re transactions with cryptocurrency accurately.
H&R Block to Assist Customers to Report Transactions in Crypto
In light of this, Kathy Pickering, H&R Block’s chief tax officer, said in the report that “the IRS is looking for people to self-report. Theirs looking for you to come forward, and they’ll be more lenient, even if you don’t get it right if your disclosing.”
Pickering added that H&R Block is seeing very significant interest from customers seeking to report this crypto transaction and that they are also ready to help, given that they’re wasn’t much information on how to report crypto holdings in the past.
Meanwhile, the amount of crypto taxes depends on how a person uses his/her crypto as an investment in they’re business, or as miners, according to recent guidelines by H&R Block.