Crypto investors in the United States are facing complex tax situations, as many of them are still grappling with losses from last year’s market downturn and the numerous bankruptcies that ensued. In response, the Internal Revenue Service (IRS) has revised its income tax form to provide greater clarity about what constitutes crypto holdings.

The latest edition of the Bloomberg Crypto newsletter reports that the IRS now uses the term “digital assets” instead of “virtual currency” in its filing instructions, clarifying that assets such as NFTs must also be reported. The change reportedly came about because taxpayers were uncertain whether NFTs were required to be disclosed.

The 2022 tax form also provides more detail on a crypto-related question that asks if the crypto was obtained as a “reward, award, or compensation.” This modification is part of the 2021 infrastructure bill, which further tightened crypto reporting requirements.

Despite already having increased regulatory demands, there is more to come in the near future. The US Treasury Department is anticipated to issue new rules for crypto service providers that will require them to provide the IRS with records of client transactions.

Each year, crypto investors who have suffered losses can use a popular technique known as tax loss harvesting to deduct up to $3,000 in losses against their income. The method involves selling assets at a loss before the end of the tax year and then purchasing them back shortly after to realize the loss.

However, some investors may have more significant problems to contend with due to the many bankruptcies witnessed among crypto companies last year. The collapse of FTX, which still has billions of dollars in investor funds trapped, was one of the most significant of these.

Crypto owners who have assets trapped in bankrupt companies cannot sell them to realize any losses, and some of these owners may still be required to pay taxes on interest earned on their crypto in 2022. For example, interest-earning crypto accounts, such as those provided by now-bankrupt crypto lender Celsius.