The AICPA recently suggested 12 FAQs that the IRS could post on its website to assist taxpayers and practitioners in responding to the new question about digital assets that appears on Form 1040.
The digital asset question included on the 2022 Form 1040 and discussed on page 15 of its instructions 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)?”
In a letter to the IRS, the AICPA offers 12 FAQs addressing the digital representation of value, the characteristics of a digital asset and various ways taxpayers could receive or dispose of digital assets. Read the letter.