The US Tax Court recently held in a Memorandum Opinion that cryptocurrency staking rewards must be included in a taxpayer’s gross income in the year of receipt, not when later sold. This finding, which validates the position taken by the IRS under IRC Section 61 (“Gross Income Defined”) and existing case law, at least partially…
In March of 2025, the Congress passed bipartisan legislation blocking enforcement of the exchange reporting requirement. The reporting measure, which the IRS delayed multiple times in response to industry criticism, became ripe for legislative challenge under a procedural rule that grants the Congress sixty days to overturn final government regulations. The remainder of this post…
Here are a couple of federal tax updates relating to cryptocurrency, courtesy of our colleagues at the AICPA Journal of Accountancy. Form 1040 virtual currency query revised for 2021 A draft version released in July of Form 1040, U.S. Individual Income Tax Return, for the 2021 tax year on page 1 retains the question from…
H.R. 3684, known as the Infrastructure Investment and Jobs Act, passed the Senate on August 18th by a vote of 69–30 and now goes to the House of Representatives for consideration. To become law, the House must pass a companion bill and then the differences between the two must be worked out in committee prior…
The Treasury Inspector General for Tax Administration (TIGTA) found in a recent audit that it is difficult for the IRS to identify taxpayers with virtual currency activity due to a lack of third-party information reporting that specifically identifies virtual currency transactions. TIGTA recommended that the IRS continue efforts to close the virtual currency information gap…
UPDATE: Congress adjourned for 2017 without further action on this bill. It was not part of the tax reform legislation passed in December. On September 7, 2017, Representatives Jared Polis (Democrat) and David Schweikert (Republican), who co-lead the Congressional Blockchain Caucus, announced the Cryptocurrency Tax Fairness Act. The Act, if passed, would amend the Internal…
As a leading public accounting firm in the virtual currency space, we regularly field inquiries from clients and potential clients relating to taxation of virtual currencies in the United States. Here is a list of the most common misconceptions held by virtual currency users that we encounter in our work, and the answers that we…
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