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Self-Study Courses

Select Income Tax Considerations for Crypto and Blockchain Transactions (Currently Unavailable)

2 CPE Credits $31.00/credit hour
4.6 (12 ratings)
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2024 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

This course will cover a discussion of certain U.S. federal income tax issues related to blockchain and crypto (digital asset) transactions. This course will cover fundamentals and basics of income tax on certain property transactions, i.e., for digital asset transactions, and select international tax issues with respect to blockchain and crypto companies/funds.

Publication Date: August 2021

Topics Covered

  • What is crypto (BTC, ETH, EOS) for IRS income tax purposes?
  • IRS' view is different from SEC or CFTC for crypto and digital assets
  • Recap Notice 2014-21 and IRS FAQs
  • Ordinary vs. (long-term) capital gain; carried interest (fund context)
  • Select international (U.S. income) tax issues for blockchain/crypto transactions

Learning Objectives

  • Identify basic federal income tax issues under Section 61, 1001, and 1012 with respect to crypto transactions
  • Recognize the basic income tax effects and considerations from certain crypto company/firm structures
  • Recognize that a multitude of international (U.S. income) tax issues must be considered before launching a token (ICO, IDO) off-shore, operating a blockchain company off-shore, or operating an inbound blockchain/crypto business in the USA (e.g., mining)
  • Identify which Revenue Rulings in 2019 addressed the topic of Hard Forks and Air Drops
  • Identify the tax rate applied after a hard fork if no new cryptocurrency is received
  • Recognize which basis is used if the digital asset contributed has been held for more than one year
  • Identify what is not one of the recent income tax developments related to crypto

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Read Notice 2014-21, IRS FAQs, IRC Sections 1001, 1012, 951(a) 1291, 1297, and 61.

Advance Preparation
None

Instructor

Adnan Islam

Adnan Islam, Esq., CPA, is a partner with Friedman LLP, co-chair of the International Tax Services group, and a leader of its Blockchain/Digital Asset Transactions group. He has nearly 17 years of public accounting experience as a licensed tax attorney and CPA. Adnan has served an array of industries and clients ranging from startups to publicly traded companies including Avon, MeadWestVaco, Honeywell, Verizon, Agilent, SunGard, Booz Allen, IDT, SunGard, AMEX, OUAI, IBISWorld, Conair, Grayscale, DCG, and various blockchain and crypto (digital asset) companies, exchanges, and private equity and hedge funds. Adnan specializes in cross-border strategies, comprehensive inbound tax services, global information reporting, and structuring for crypto funds, companies, and exchanges.

As an industry thought leader, Adnan has lectured on international tax at TEI events, AICPA seminars and served as an adjunct professor for Golden Gate University Master’s in Tax curriculum. Adnan’s expertise includes advising clients at all stages of business and restructuring, with respect to FDII, GILTI, 245A DRD, subpart F, PFICs, and other issues. Additionally, Adnan empowers his clients’ decision-making and improves their supply chain and operational efficiency, including the use of holding companies, treaty country networks, and affirmative tax planning through comparative rate modeling.

Adnan is a licensed attorney admitted to practice law in New Jersey, DC, and California and a Certified Public Accountant (NY & CA). He holds a Juris Doctor (J.D.) and an M.B.A. from Rutgers University; an LL.M. in Taxation from the New York University School of Law; a blockchain business certificate from MIT; and is currently enrolled in Georgetown Law's Tax LL.M. (International Tax Certificate) program. Adnan has been admitted as a Certified Legal Specialist in Tax Law by the State Bar of California. He also is an (inactive) enrolled agent (through IRS exam).
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