Tax Information Reporting
Sound and Fury: 2020 Crypto Tax Update
Take a deeper look into the year in Crypto Tax and what your organization needs to be aware of when the IRS provides final guidance on Crypto Taxation.
For professionals following developments in U.S. crypto taxation over the past year, it’s been a period of mixed experiences. While some have been consumed by the sound and fury, others have recognized that very little seemingly happened.
Missives between Congress and the IRS in spring 2019 gave way, in the fall, when the IRS issued a new set of crypto tax FAQs and a revenue ruling on crypto hard forks. During that time, the tax agency announced that it was sending out some 10,000 “educational” letters to remind taxpayers who may have entered into crypto transactions that such transactions needed to be accounted for in their tax returns.
While the new IRS tax guidance attempted to clarify some questions on how crypto transactions should be taxed and was certainly welcome, there was much left unanswered and some of the guidance raised new questions. More, for financial intermediaries facilitating crypto trading, there continues to be no guidance on third-party information reporting requirements related to crypto trades – though that may be changing in the near future.
Access the full report to find out our recap of the year in crypto tax including:
- Taxation of property redux
- Enforcement of crypto transactions
- Tax reporting
A number of questions arise in regards to the IRS’s hard fork guidance. An initial one is whether the IRS has misunderstood the mechanics of a hard fork...