On their 2022 IRS tax forms, Americans will find a category that includes both cryptocurrencies and nonfungible tokens (NFTs). This category will be bigger and clearer. The Internal Revenue Service released a draught bill with a clear section on “Digital Assets.” This section explains if and how taxpayers will have to account for their use of cryptocurrencies, stablecoins, and NFTs.
On page 16 of the draught, “cryptographically secured distributed ledger or any similar technology” is given as an example of a digital asset. On the 1040 tax form for 2021, taxpayers had to say if they had received, sold, or traded “virtual currency.” This term will change on the 1040 tax form for 2022, which hasn’t been released yet.
