Cryptocurrency tax enforcement has become a major compliance priority for the IRS. As tax rules continue to evolve, recent years have proven that the Internal Revenue Service is aggressively pursuing 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 revenues and reporting are handled – especially when it comes to foreign and international cryptocurrency. Additionally, the new 1040 tax return includes a direct question about virtual currency (also known as 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 major enforcement priority for the US government – and why understanding crypto taxes is very important.

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