US Internal Revenue Service: Fiat purchases of cryptocurrencies do not comply with tax regulations.

The U.S. Internal Revenue Service (IRS) said on Tuesday it would not require cryptocurrency traders to "use real money to buy virtual currency" to report changes to their tax returns for the year 2020, according to CoinDesk. The description, posted on Tax Office The Crypto FAQ page, benefited taxpayers buying bitcoin in US dollars by ticking their crypto box into their $ 1,040 in one year. However, the range of exceptions is very narrow. According to the latest IRS FAQ update, traders who exchange one cryptocurrency for another, sell a job, or receive an airdrop token will still need to check the cryptocurrency box.