By Payroll and Entitlements Editorial Staff
The IRS has released cryptocurrency guidance and frequently asked questions on virtual currency.
Under the cryptocurrency guidance:
- a taxpayer does not have gross income from a hard fork of the taxpayer's cryptocurrency if the taxpayer does not receive units of a new cryptocurrency; and
- a taxpayer has ordinary income as a result of an airdrop of a new cryptocurrency following a hard fork if the taxpayer receives units of the new cryptocurrency.
The IRS has also posted on its website a set of Frequently Asked Questions (FAQs) about virtual currency.
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