IRS – Simply buying cryptos does not require IRS reporting

Q5. The 2020 Form 1040 asks whether at any time during 2020, I received, sold, sent, exchanged, or otherwise acquired any financial interest in any virtual currency. During 2020, I purchased virtual currency with real currency and had no other virtual currency transactions during the year. Must I answer yes to the Form 1040 question? (3/2/2021)

A5. No. If your only transactions involving virtual currency during 2020 were purchases of virtual currency with real currency, you are not required to answer yes to the Form 1040 question.

www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-on-virtual-currency-transactions

 

h/t CharlieFoxtrot

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