Tax Implications of Cryptocurrency

Author: Allison McLeod

This course presents an overview of blockchain and the tax implication of cryptocurrency transactions. The IRS has provided some recent guidance, but potentially conflicting pronouncements by other regulatory agencies have created uncertainty on reporting issues. This course will help the practitioner understand when a taxable transaction has occurred, what reports to file to satisfy IRS requirements, and identify tax traps for the unwary.

Publication Date: May 2022

Designed For
Corporate tax and finance executives, directors, managers and staff, CPAs, Cas, Enrolled Agents, accountants, attorneys and business/financial advisors who work with and advise individuals or businesses that use or invest in cryptocurrency. All in-house and public practice professionals involved with tax compliance and planning will benefit from this timely and insightful seminar.

Topics Covered

• Background of Blockchain and Cryptocurrency
• Other Definitions
• Classifying Cryptocurrency
• Taxable Transactions
• Mining
• Gifts
• Traps for the Unwary
• IRS Enforcement

Learning Objectives

• Describe what constitutes blockchain and the various types of cryptocurrency it supports
• Recognize how to determine whether a cryptocurrency transaction creates a taxable event
• Identify the IRS forms needed to report cryptocurrency transactions
• Identify characteristics of cryptocurrency
• Recognize a string of numbers and letters that are used to access your wallet
• Identify an app that allows cryptocurrency users to store and retrieve their digital assets
• Describe a nontaxable cryptocurrency event
• Recognize which types of transactions with cryptocurrency requires a "yes" answer on Form 1040

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None