TechFlow News, March 10: According to Bitcoin News, the U.S. Internal Revenue Service (IRS) has introduced a new form for cryptocurrency audits, listing over 100 platforms—including exchanges such as Coinbase, Binance, Kraken, FTX, and Mt. Gox, as well as self-custodial wallets like MetaMask, Ledger, and Trezor. Taxpayers under audit must respond “Yes” or “No” for each platform and sign the form under penalty of perjury; records may extend back several years.
Tax professionals warn that omitting previously used platforms could trigger further scrutiny, while excessive disclosure might open new investigative leads—consulting a cryptocurrency tax attorney before signing is strongly advised. Audits typically focus on three categories of taxpayers: those who answered “Yes” to the digital asset question on Form 1040 but reported minimal activity; those whose Form 1099-DA income does not match their tax return; and high-frequency traders active during the bull market from 2017 to 2021.
