The Internal Revenue Service (IRS), an enforcement agency of United States federal tax laws, has released a list of reporting requirements for the general public dealing with cryptocurrencies with the deadline approaching for filing the 2022 federal income tax return.
It has been reported that until 2021, the IRS used the term “virtual currencies” in income tax-related reporting forms, which have been updated to “digital assets.” All US citizens must answer questions about cryptocurrencies “regardless of whether they engaged in any transactions involving digital assets.”
However, the question about digital asset income features in three forms — 1040, Individual Income Tax Return; 1040-SR, US Tax Return for Seniors; and 1040-NR, the US Nonresident Alien Income Tax Return, which asks:
“At any time during 2022, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, gift or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”
Thus, a bill recently pitched during the first session of the Arizona State Senate in 2023 proposed having Arizona residents decide on amending the state’s constitution in regard to property taxes.
Source: Cointelegraph