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.
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.
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