New IRS Guidelines on crypto and forks have been announced this week.
In an interview session with Bloomberg, Shartsis Friese tax attorney, Dashiell Shapiro said that the US tax collectors are several years late on the guidelines.
“If you own bitcoin in your wallet today and magically in your account tomorrow you own bitcoin cash, that may be a moment when you have a taxable event.”
The new IRS guidelines on crypto also poses problems particular to airdrops and network forks. When investors receive the forked coins, tax must be paid on the corresponding income of the new cryptocurrencies. The same applies to when coins are distributed via airdrops.
These new guidelines raise questions about what income really is and reveals that the IRS is still confused about cryptocurrencies.