Enlarge (credit: Thomas Trutschel / Getty Images News) The Internal Revenue Service is considering adding a question to Form 1040—America's primary income tax form—asking tax filers if they dealt in virtual currency in 2020. It would be the agency's latest attempt to crack down on underreporting of cryptocurrency profits. If an American buys bitcoin, ether, or another cryptocurrency and then sells it later at a profit, she or he will typically owe capital gains tax on the difference.