All individuals (and businesses) must answer a question on their tax return about digital currency. The question must be answered by all taxpayers.

It asks: “At any time during [tax year], did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”

As long as you keep your activity well-documented and work with reputable dealers and platforms, you should have no issues keeping in compliance with these new tax laws.

If you simply owned digital assets during the tax year, you can check the "No" box as long as you did not engage in any transactions involving digital currency during the year or if your activities were limited to one or more of the following:

• Holding digital assets in a wallet or account;

• Transferring digital assets from one wallet or account they own or control to another wallet or account they own or control; or

• Purchasing digital assets using U.S. or other real currency, including through electronic platforms.

For a set of frequently asked questions (FAQs) and other details, visit IRS.gov. You can also contact us if you have questions.