Cryptocurrency Tax Update: Impact of New IRS Guidance and Proposed U.S. Tax Rate Increase
By EsqSocial Corporation 14/05/21
The IRS recently clarified its position on the U.S. income tax treatment of a hard fork. A hard fork occurs when protocols on a blockchain change, causing a "fork" or splintering of the existing blockchain into two distinct ledgers. In 2019, the IRS asserted in Revenue Ruling 2019-24 that any unit of cryptocurrency received as a result of a hard fork and obtained via an airdrop was taxable to the recipient. As relevant here, an airdrop generally refers to the gratuitous, en masse distribution of...
By: Jones Day