Failure to report cryptocurrency on your tax return can lead to trouble with the IRS

Failure to report cryptocurrency on your tax return can lead to trouble with the IRS

Got bitcoin or other crypto? It could come back to bite you if you don't let the IRS know about it.Regardless of how you interacted with any cryptocurrencies last year, you're expected to include the information on your 2020 tax return. And for those who had income from virtual currency “” whether due to selling at a profit or getting paid crypto for work performed “” failure to report it may haunt you."It could be a real tax mess for folks who try to hide crypto earnings from the IRS," said Kathryn Hauer, a certified financial planner with Wilson David Investment Advisors in Aiken, South Carolina.More from Personal Finance:Tax season is upon us. Here's what's new These taxpayers get until June 15 to file their returnsHow Social Security benefits are handled at deathFor instance, "just because in one year an entity that paid you doesn't report that payment, a year from now when the entity gets audited and issues late 1099 forms, the IRS will expect you to have reported what you earned," Hauer said.The IRS has put crypto front and center for this tax-filing season. High up on the first page of your tax return, a yes or no