Surprise, the IRS is intensely interested in filers who transact in virtual currencies.
They are requiring more disclosure. Starting with returns filed this year, people must answer on Schedule 1 of the 1040 whether they’ve received, disposed of, sold, exchanged or acquired any financial interest in virtual currency, such as bitcoin.
If the answer is no, Schedule 1 is not required to be attached to the 1040 filing unless the taxpayer has income or deduction items to include on the schedule.
Traceability of virtual currencies are to be easier with the advent of blockchain. Thus, allowing the IRS get a guaranteed taste of your income.