Cryptocurrency Taxation Fundamentals and Open Issues

Author: Annette Nellen

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

This course explains cryptocurrencies and similar digital assets including ICOs and non-fungible tokens (NFTs), how and why used, and IRS guidance. The numerous tax issues not addressed by the IRS or state tax authorities are explained along with tips for dealing with them. Background to help understand the tax consequences includes definitions, the technical elements of cryptocurrencies and usage, and emerging trends. Compliance including dealing with the 1040 cryptocurrency question, recordkeeping and due diligence considerations are addressed.

Publication Date: February 2022

Designed For
Practitioners who advise individuals and businesses.

Topics Covered

  • What's Cryptocurrency and What's it Good for
  • Federal, State and Local Tax Guidance and Activities
  • IRS Enforcement
  • The Technology and Financial Capabilities are Significant with Continuing Innovation, Capabilities and Uses
  • Open Tax Issues and Dealing with Them
  • Due Diligence and Recordkeeping Considerations in Assisting Clients Holding and Using Cryptocurrencies
  • Tips for Taking a Deeper Dive and Staying Current with the Tech, Finance and Tax Matters

Learning Objectives

  • Explain cryptocurrencies and how they are obtained and used
  • Recognize IRS guidance and open issues and how to deal with them
  • Identify the year in which a purchase of 2 pizzas was made for 10,000 bitcoins
  • Identify a type of cryptocurrency
  • Recognize the six common features of all blockchains
  • Identify the technique that generally refers to offering fractional investment in various assets or aid in its transfer
  • Identify the number of different ways there are to treat hard forks based on the NYSBA Comments on Rev. Rul. 2019-24
  • Recognize the type of platform that allows parties to post small tasks
  • Identify a way to keep up with crypto tech and tax issues

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

Registration Options
Quantity
Fees
Regular Fee $62.00

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