On Jan. 16, 2024, the U.S. Treasury Department and the Internal Revenue Service (IRS) announced the delay of the requirement for persons engaged in a trade or businesses to report
Continue Reading Delay on Reporting Digital Asset TransactionsPallav Raghuvanshi
Pallav Raghuvanshi focuses his practice on U.S. and international tax matters in the context of corporate restructurings and cross-border mergers and acquisitions. He is experienced handling spin-off transactions for large multinational companies, various inbound and outbound transactions involving issues related to foreign tax credits, tax treaties, controlled foreign corporations, and other international reorganization issues. He also handles U.S. federal tax aspects of initial coin offering / first token sales and other tax-related issues on blockchain technology and cryptocurrencies.
5 Trends to Watch: 2024 Blockchain
- Continued Robust Litigation and Enforcement Actions by Federal and State Regulators and Enforcement Authorities – We will likely see a similar level of anti-fraud prosecutions by the Department of Justice
Treasury and IRS Issue New Proposed Regulations on Digital Assets
On Aug. 25, 2023, the Internal Revenue Service (IRS) and the Treasury Department issued proposed regulations (the Proposed Regulations) regarding the sales or exchanges of digital assets, including…
Continue Reading Treasury and IRS Issue New Proposed Regulations on Digital AssetsIRS Clarifies Taxation of Staking Crypto Rewards
To address the tax implications for taxpayers who stake cryptocurrency on a proof-of-stake blockchain and receive validation rewards, on July 21 the Internal Revenue Service (IRS) issued Revenue Ruling 2023-14…
Continue Reading IRS Clarifies Taxation of Staking Crypto RewardsA Recent Court Case Leaves Many Speculating on the Taxation of Staking Rewards
The IRS has not issued any clear guidance on the taxation of staking rewards. In 2014, the IRS issued Notice 2014-21, which provides that cryptocurrency is treated as property for…
Continue Reading A Recent Court Case Leaves Many Speculating on the Taxation of Staking Rewards
UPDATED: Infrastructure Bill Contains New Cryptocurrency Reporting Requirements
The U.S. Senate passed its infrastructure bill (the “Bill”) that includes additional cryptocurrency reporting requirements, which are expected to generate $28 billion in revenue. The Bill currently does not provide…
Continue Reading UPDATED: Infrastructure Bill Contains New Cryptocurrency Reporting Requirements
IRS Confirms Pre-2018 Crypto Exchanges Are Not ‘Like-Kind’
In November, IRS Office of the Associate Chief Counsel attorney Suzanne Sinno said taxpayers cannot defer taxes on exchanges of cryptocurrency, even for transactions that occurred before 2018. Speaking at…
Continue Reading IRS Confirms Pre-2018 Crypto Exchanges Are Not ‘Like-Kind’
IRS Clarifies Guidance on Hard Fork Transactions, Offers None on Promotional Airdrops
The IRS recently clarified its guidance in Rev. Rule 2019-24, noting that taxpayers must pay income tax on new coins they receive after a transaction in which one cryptocurrency…
Continue Reading IRS Clarifies Guidance on Hard Fork Transactions, Offers None on Promotional Airdrops