As the 2023 tax forms are being released this week, the IRS has added a new question for taxpayers: At any time during 2023, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?

Taxpayers are required to answer yes or no. The IRS says its question was revised this year to update wording.

The question is at the top of Forms 1040, Individual Income Tax Return; 1040-SR, U.S. Tax Return for Seniors; and 1040-NR, and U.S. Nonresident Alien Income Tax Return.

The Digital Asset question was also added to additional forms, primarily used for businesses: Forms 1041, U.S. Income Tax Return for Estates and Trusts; 1065, U.S. Return of Partnership Income; 1120, U.S. Corporation Income Tax Return; and 1120-S, U.S. Income Tax Return for an S Corporation.