On October 9 the IRS released long-awaited guidance for taxpayers who engage in transactions involving virtual currency. This is the first official guidance coming from the IRS on this topic in over five years. Two documents, Revenue Ruling 2019-24 and a set of 43 FAQs, address a range of issues, including forks, off-chain transactions, revenue recognition, charitable contributions, and valuation methodologies, among others.

While this guidance confirms much of present-day understanding of the tax treatment of virtual currency transactions, it may come as a surprise for some taxpayers.

Please contact us if you have questions or require assistance with reporting and tax planning around your crypto portfolio.