Overview
On November 21, 2022, Tax Notes quoted Lisa Zarlenga in a piece titled "IRS Data Shows Uptick in Reporting Crypto Transactions." The article discusses the increased number of tax returns that checked "yes" in response to the question about whether the taxpayer engaged in virtual currency transactions. Initially the question regarding virtual currency was only asked on Schedule 1 in 2019, however the IRS moved the question to the first page of form 1040 to increase its visibility for those who do not need to file Schedule 1 as part of their tax return. Over the years, the IRS also continued to clarify the wording of the question.
Zarlenga expressed that the increased number of tax returns checking "yes" could be due to an overall better understanding of the question and higher prevalence of virtual currency use.
The full article can be read at Tax Notes (Subscription Required).
