The IRS recently clarified that crypto investors who only “purchased” digital assets using fiat but did not sell or transact those assets during 2020, do not need to report their purchases on page 1 of their 1040s. The IRS cryptocurrency FAQs were updated on the IRS website, stating: “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.” This should come as a relief to crypto investors because the page 1 1040 crypto question appeared to read very broadly: “At any time during 2020, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?” For now, it appears that the IRS is cutting crypto investors a break in their reporting requirements. All crypto transactions, however, remain reportable and likely taxable.