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New IRS Crypto Audit Form Requires Reporting of All Exchange and Wallet History, Covering Over 100 Platforms Including Coinbase
Svmuu News: The U.S. Internal Revenue Service (IRS) has introduced a new inquiry form for cryptocurrency tax audits, requiring taxpayers to disclose a complete history of the exchanges and wallets they have used. The form lists more than 100 platforms, including Coinbase, Binance, Kraken,FTX, Mt. Gox, and others, as well as self-custody wallets such as MetaMask, Ledger, and Trezor. Taxpayers who receive the form are required to mark “Yes” or “No” for each platform, sign the document to confirm, and are subject to perjury penalties for any false statements.The form is believed to be designed to map taxpayers’ complete history of crypto asset activity across multiple exchanges and wallets, potentially spanning several years. Tax professionals warn that omitting historical platforms may trigger further scrutiny, while excessive disclosure could provide new leads for investigations; they recommend consulting a crypto tax attorney before signing.Audits typically focus on three categories of individuals: those who checked “Yes” on the digital asset section of Form 1040 but reported minimal activity; those whose Form 1099-DA income does not match their tax returns; and high-frequency traders during the 2017–2021 bull market. (Bitcoin News)
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