Crypto Tax Resources

IRS Guidance on Digital Assets:

  • IRS Notice 2014-21: The earliest IRS guidance on digital assets. Defines virtual currency as property and provides general principles of tax treatment.
  • FAQs on Virtual Currency Transactions: Provides answers to frequently asked questions regarding tax treatment of cryptocurrency transactions. The IRS updates the page from time to time to provide new information or clarifications.
  • Revenue Ruling 2019-24: Address tax treatment of hard forks and airdrops.
  • Form 1040 Instructions: Includes questions about digital asset transactions starting from tax year 2019.
  • Form 8949 and Schedule D Instructions: For reporting capital gains and losses from digital asset transactions.
  • IRS Notice 2023-27: Announces the IRS’ intention to issue guidance regarding treating NFTs as collectibles.
  • IRS Chief Counsel Advice (CCA) 202302011: Conclusion about loss deduction for significant decrease in value of a digital asset.
  • IRS Chief Counsel Advice (CCA) 202302012: Guidance about qualified appraisal requirement for charitable contribution of cryptocurrency.

Latest Developments:

  • Proposed Regulations on Broker Reporting of Digital Assets: Aim to enhance crypto tax compliance by requiring brokers to report information on digital asset transactions to the IRS and taxpayers, similar to traditional securities reporting.
  • IRS Draft Form 1099-DA: Designed to facilitate the reporting of crypto transactions by brokers, with the goal to ensure accurate tax reporting and compliance for digital asset activities.

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