How to File Taxes if You Used Cryptocurrency in 2021 – Technology


United States: How to File Taxes if You Used Cryptocurrency in 2021

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Taylor Weinstein, an attorney in the firm’s tax and investment management groups, was recently interviewed by Weather magazine on how to manage the tax implications of investing with cryptocurrency. According to Weinstein, crypto is “an area where the IRS is very much looking to audit because I think they view it as a high source of revenue.”

Weinstein goes on to note that Form 1099-K is mission critical, as many crypto exchanges have started issuing a tax form called the 1099-K for their most active merchants (i.e. those who have exceeded $20,000 in gross payouts and 200 separate transactions). “It’s the IRS’ number one line of defense right now, because these 1099-Ks are filed with the IRS at the same time they’re delivered to the recipient…(i)t going to be the IRS’ weapon for finding taxable crypto transactions.

The full article, which has been picked up by other outlets, including BTC Crypto Newsis available here.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

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