Yes or No Question for virtual currency transaction for 2021

[Kiki]

I purchased ATOM with US Dollar $ .  I didn't sell, just holding but it seems I received rewards by staking.

*  My answer to the IRS question is still " NO " , right?

*  Do I have to report the rewards I received as income?  If so, where should I report?

Thank you so much!

[Mike9241]

How is staking taxed? 

The IRS has not issued explicit guidance on how staking is taxed. However, most tax experts agree that rewards will be taxed as income at the time of the receipt based on previous IRS guidance on mining taxes. 

this would go on schedule 1 line 8Z

[NCperson]

@Kiki  if ATOM is a virtual currency, your answer to the question is 'yes'.

the question asks if you had a transaction - and a 'transaction' is a "buy' or a 'sell'.  

you state your PURCHASED ATOM, so that is a transaction. 

[Kiki]

Thank you for your reply.  So, should I answer YES?

I am still confused.  Below is what the IRS says in Frequently asked Question.  I would appreciate any advice. I just don't want to make any mistake that may lead to so much headache later.

Q5(a). The 2021 Form 1040 asks whether at any time during 2021, I received, sold, exchanged, or othe...

A5(a). If your only transactions involving virtual currency during 2021 were purchases of virtual currency with real currency, you are not required to answer “yes” to the Form 1040 question, and should, instead, check the “no” box.

[Critter-3]

If you only bought crypto in 2021   then you will  answer NO for 2021  ... last year the 2020  question was worded differently ...

[NCperson]

@Critter-3 and the language in the 2022 draft changes it again.....

https://www.irs.gov/pub/irs-dft/f1040--dft.pdf

"(b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?"

[Critter-3]

Of course ... they are still trying to figure out this crypto situation ...