New Virtual Currency Guidance Issued by IRS
Earlier this month, the IRS issued two new pieces of guidance on the tax treatment of digital currency for taxpayers who engage in transactions involving online currency. This expands on Notice 2014-21 issued in 2014 and helps business and individual taxpayers better understand their reporting obligations for specific transactions involving virtual currency.
The new guidance includes Revenue Ruling 2019-24 and frequently asked questions, including questions that address digital money transactions for those who hold cryptocurrency as a capital asset.
For more information, see Virtual currency: IRS issues additional guidance on tax treatment and reminds taxpayers of reporting obligations at IRS.gov/News.