If you’re still trying to understand the new IRS guidance around virtual currency Airdrops and Hard Forks, as well as the IRS’s FAQ section on cryptocurrency, you’re not alone.
If you’re still trying to understand the new IRS guidance around virtual currency Airdrops and Hard Forks, as well as the IRS’s FAQ section on cryptocurrency, you’re not alone. Last week, BPM’s Dmitri Alexeev partnered with the Accounting Blockchain Coalition to explain the updated guidance and how it will affect cryptocurrency and blockchain users.
Watch Now:
IRS Tax Guidance Hard Forks, Airdrops and FAQS from Accounting Blockchain Coalition on Vimeo.
Background:
The blockchain and digital assets community finally received highly-anticipated new IRS cryptocurrency guidance on October 10.
In addition to finally issuing Rev. Rul. 2019-24, the IRS updated its Frequently Asked Questions on Virtual Currency Transactions webpage by summarizing guidance into 43 Questions and Answers in hopes of clarifying cryptocurrency tax obligations.
Virtual currency stakeholders waited patiently for the additional guidance after IRS Commissioner Charles Rettig replied to April 11, 2019 letter from 21 U.S. Congress members urging the agency for basic reporting requirements. The public, based on the Commissioners May 16, 2019 response, expected the IRS would address controversy around the acceptable method for calculation virtual currency cost basis, the acceptable methods for cost basis assignment, the treatment of forks and to provide additional guidance with respect to many items not addressed in the Notice 2014-21.
Click here to read more about the Ruling and its impact.
BPM for Blockchain/Digital Assets
BPM is one of the largest West Coast-based CPA firms that specializes in serving the digital assets and blockchain industry. BPM provides individual and business tax compliance, consulting and tax structuring services. Our professionals have extensive knowledge and experience in dealing with accounting and auditing matters, as well as regulatory and compliance issues, including revenue recognition, IT compliance, enterprise risk management and classification of digital assets. Learn more at https://www.bpmcpa.com/blockchain.
