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IRS Expands Crypto Question on Tax Form

IRS Expands Crypto Question on Tax Form

The Internal Revenue Service (IRS) has modified the crypto question asked on Form 1040, the tax form used by all U.S. taxpayers to file an annual income tax return.

New Crypto Tax Question

The Internal Revenue Service (IRS) published a draft of Form 1040 for the 2022 tax year last week. Form 1040 is the tax form used for filing individual income tax returns in the U.S.

The crypto question on the front page of Form 1040 now reads: “At any time during 2022, did you: (a) receive (as a reward, award, or compensation); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?”

The new question expands on its previous version on Form 1040 for the tax year 2021, which states: “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?”

In March, the IRS published a notice stating: “All taxpayers filing Form 1040, Form 1040-SR, or Form 1040-NR must check one box answering either ‘Yes’ or ‘No’ to the virtual currency question. The question must be answered by all taxpayers, not just taxpayers who engaged in a transaction involving virtual currency in 2021.”

The tax authority explained that taxpayers can check “no” if they merely own cryptocurrency and have not engaged in any crypto transactions at any time during the year. In addition, they can check “no” if their activities were limited to holding or transferring crypto within their own wallets or accounts, purchasing crypto “using real currency, including purchases using real currency electronic platforms such as Paypal and Venmo,” and “engaging in a combination of holding, transferring, or purchasing virtual currency as described above,” the IRS detailed.

What do you think about the new IRS tax question? Let us know in the comments section below.

TA- The Price Of Axie Infinity Struggles Despite Crypto Relief Rally

The price of Axie Infinity (AXS) has struggled recently with a few bullish signs against Tether (USDT) despite market sentiments around the project. As a result of the “Merge” sentiments, this has led to many altcoins showing relief rallies and newer altcoins making all-time highs; the price of Axie Infinity has struggled to rally despite::Listen

The price of Axie Infinity (AXS) has struggled recently with a few bullish signs against Tether (USDT) despite market sentiments around the project.

As a result of the “Merge” sentiments, this has led to many altcoins showing relief rallies and newer altcoins making all-time highs; the price of Axie Infinity has struggled to rally despite many expectations on AXS holders.

The Merge is an upgrade on the Ethereum network from Proof-Of-Work (POW) to Proof-Of-Stake (POS) to increase its network efficiency in transactions. (Data feeds from Binance)

Axie Infinity (AXS) Price Analysis On The Weekly Chart
Weekly AXS Price Chart | Source: AXSUSDT On Tradingview.com

From the chart, the price of AXS saw a weekly low of around $14.2, which bounced from that area and rallied to a price of $18.

The price has built more momentum as it faces resistance at $19.3.

If the price of AXS on the weekly chart continues with this structure, it could quickly revisit $18, acting as a good support area for buy bids.

Weekly resistance for the price of AXS – $19.3.

Weekly support for the price of AXS – $14.

Price Analysis Of AXS On The Daily (1D) Chart
Daily AXS Price Chart | Source: AXSUSDT On Tradingview.com

The price of AXS found strong support at around $17.5, which seems to be an area of interest on the daily chart.

AXS bounced from its support and has rallied as it faces resistance at $19.3. The price of AXS has continued to range in a channel; breaking out of this channel could send the price of AXS to $28.

At the point of writing, the price of AXS is $19.27, above the 50 Exponential Moving Average (EMA) with a price of $17.5.

If the price of AXS holds the support of $17.5 successfully, we could see the price trending higher with a successful breakout of the channel; if the price of AXS gets rejected, $17.5, which corresponds with 50 EMA, will be good support for buys.

The Relative Strength Index (RSI) for the price of AXS on the daily chart is above 55, indicating healthy buy bids for AXS.

Daily (1D) resistance for AXS price – $19.3.

Daily (1D) support for AXS price – $17.5.

Price Analysis OF AXS On The Four-Hourly (4H) Chart
Four-Hourly AXS Price Chart | Source: AXSUSDT On Tradingview.com

The price of AXS has continued to range in a channel having resistance at $19.3. 

AXS is trading above the 50 and 200 EMA with prices of $18.4 and $17.3, acting as its support on the 4H chart should the price of AXS gets rejected due to the weekend sell-off.

If the price of AXS holds above the support of 18.4 with the good volume, we could see prices trending and breaking out of the range channel. If AXS experiences a sell-off, 50 and 200 EMA prices would support AXS prices.

Four-Hourly (4H) resistance for AXS price – $19.3.

Four-Hourly (4H) support for AXS price – $18.4, $17.3.

Featured image from Coin News, Charts from TradingView.com

IRS Expands Crypto Question on Tax Form

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