The IRS has released a new Form 1040 for the 2019 tax year. Consistent with recent IRS guidance, the form requires (1) virtual currency to be treated as property (and generally as a capital asset), (2) realization upon the use of virtual currency to purchase goods, and (3) realization following an air drop of virtual currency.  Schedule 1 requires taxpayers to report transactions in virtual currency, whether or not taxable.

For a discussion of other IRS actions relating to virtual currency transactions, please see our previous BrassTax articles here, here and here.