Cryptocurrency tax enforcement has become a key compliance priority for the IRS. While the tax rules continue to evolve, the past few years have proven that the Internal Revenue Service seeks to aggressively seek enforcement. In 2019, the IRS issued a revenue ruling (RR 2019-24) on the treatment of crypto. Despite the revenue ruling, many questions remain unanswered about how crypto income and reporting are treated — especially if it involves overseas and international cryptocurrency. Moreover, the new 1040 tax return has a direct question regarding virtual currency (aka crypto or Bitcoin) on the very first page of the tax return. That should give you a clear indication of how cryptocurrency has become a key enforcement priority for the US government — and why understanding crypto taxes is very important.
source
