Bitcoin issues

[Dude]

I thought they would start looking at this with more scrutiny, instead they treat it like those out of state purchase made to avoid sales tax: self report. On the other hand it seems like they really got the process for the $42 people make for Jury Duty down pat.

[BOB W]

This is very confusing. My simple mind cannot deal with this confusion. Purchases don't count?????
Why does my program have an entry dropdown to record purchases...???

[BP.]

IRS FAQ on Virtual Currency

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.

I know you mentioned no purchases in 2020, but maybe this recent update is informative for 2021.

[BOB W]

If it was my client I would answer NO and fill out prior year purchase info. While it asks about current year info I think it does require previous purchases.

[RWG1950]

My new customer tells me that he acquired some Bitcoin prior to 2020.
He acquired none in 2020 and hadn't sold or used any of it until early in 2021.
As I read the IRS virtual currency question on the 1040, it would seem my customer has nothing to report
on his 2020 return & can answer no to this question. (2021 will be another matter)
Anybody feel that I am misunderstanding this ?
Thanks for comments.