re: Taxes and Crypto

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Hypothetically, I’m mixed on what someone with crypto holdings but potentially no gains would do here with their bullshite yes/no question. People don’t have to identify non taxable events such as buying stock and not selling it

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Here's the question on 2020 Form 1040:

"At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?"

If you did not buy or sell any, or exchange any, then I think you can answer no.

Now, the IRs considers crypto to be property, not currency. So if you used 1 bitcoin to buy, for example, a car, then you would have to answer yes, and report the gain.

As far as the ole "will they find out" question? I can tell you the IRS is putting a lot of resources into trying to find out.