The IRS in the United States has launched a new form for cryptocurrency audits, requiring the reporting of all exchange and wallet histories
According to Bitcoin News, the IRS has introduced a new form for cryptocurrency audits, listing over 100 platforms, including exchanges like Coinbase, Binance, Kraken, FTX, and Mt. Gox, as well as self-custody wallets like MetaMask, Ledger, and Trezor. Those being audited must mark "yes/no" for each and sign under the penalty of perjury, with records potentially dating back several years.Tax professionals warn that failing to report historical platforms could trigger further scrutiny, while excessive disclosure may open new lines of investigation. It is advised to consult a crypto tax attorney before signing. The audit focus typically targets three groups: those who marked "yes" in the digital asset section of Form 1040 but reported very few activities, those whose 1099-DA earnings do not match their tax returns, and high-frequency traders during the bull market from 2017 to 2021.