A Guide To Crypto Tax Obligations

Co-author Lee Bratcher, Founder and President of the Texas Blockchain Council

Cryptocurrency has grown from a niche digital curiosity to a mainstream financial instrument. With the surge in popularity and the increase in transactions involving cryptocurrencies, the IRS has intensified its focus on ensuring proper tax reporting. They have also over-corrected with guidance and rules that many consider overreaching and anti-competitive. In some instances, the IRS has failed to provide sufficient guidance such that taxpayers can reasonably know how to treat and report transactions involving this new and unique financial asset. Correctly reporting cryptocurrency transactions is crucial for investors not only to avoid hefty penalties but also to stay compliant with the current legal framework. As the IRS continues to evolve its guidelines, it's imperative for cryptocurrency investors to understand their tax obligations so that they can comply. Greater compliance