The U.S. Internal Revenue Service has released the latest version of Form 1040 to address cryptocurrency issues.

The U.S. Internal Revenue Service (IRS) released the final version of Form 1040 with minor changes to crypto issues.

A previous BitTweet report found that last year the IRS added cryptocurrency queries to its 1040 list. The IRS hopes to avoid inconsistencies in cryptocurrency reporting.

Tax experts say the word 2020 does not make it clear that buying or holding is appropriate for the crypto industry.

In March of this year, the IRS updated its FAQs to clarify:"If by 2020 the only market dealing with virtual currency is the purchase of virtual currency with real money, you do not need to answer 'yes' to the question on Form 1040." This shows that the IRS pays more for cryptocurrency transactions that include tax issues.

These questions are still at the top of the list, just below the profile, but in this year's list, the IRS has changed some of the questions. "Will you be able to receive, sell, exchange or have the benefits of virtual currency trading at any time during the year 2021?"

The new language is clear because it only deals with businesses that generate taxes. The final form is accompanied by instructions for answering the questions. As of December 3, 2021, this information is still on the list, but advises taxpayers to choose "no" when answering these questions. The sole taxpayer, if any, exchanges tokens for their wallets or uses their legal benefits to purchase cryptocurrencies.

Activities such as receiving cryptocurrency as payment, airdrops, exchanging cryptocurrency for cryptocurrency, selling, mining, lending, or hard work require taxes. to answer "yes" to cryptocurrency requests.