The IRS requires individuals to answer a question on their tax returns regarding their involvement in crypto transactions, asking if they received or dealt with digital assets during the year. This applies to various types of tax forms such as Forms 1040, 1040-SR, 1040-NR, 1041, 1065, 1120, and 1120S. Anyone filing these forms must check either "Yes" or "No" and disclose related income. This question aims to gather information about individuals' use of cryptocurrency, and a failure to provide accurate information could lead to penalties or legal issues. The IRS requires respondents to report any gains or losses from digital asset transactions using specific tax forms. It is advisable to answer truthfully and amend past returns if necessary to avoid potential audit risks, even if one did not receive any IRS warning letters about crypto activities.