DRAFT FORMS ISSUED BY THE IRS:
Draft Form 1040,U.S. Individual Income Tax Return, and accompanying Schedules 1, 2, and 3 were released by the IRS on July 27.
The draft 1040 updates reporting on virtual currency by asking if the taxpayer received as a reward, award, or compensation a digital asset or a financial interest in a digital asset. The draft 1040 also creates individual sections for income, taxes and credits, and payments.
Schedule 1 is used to report additional sources of income and adjustments to income, with more line items to report specific income amounts. Schedule 2 reports additional taxes. Schedule 3 is used to report additional credits and payments.