Crypto tax policy is evolving, and clear guidance is key to industry growth. I joined @jacqmelinek on @_TalkingTokens to discuss:.📌 The biggest challenges in crypto tax reporting.📌 How businesses & investors can stay compliant.📌 What 2024 regulations mean for digital assets.

RT @Cointelegraph: 🎙️ NEW: Crypto taxes can be complicated, but TaxBit’s Director of Government Solutions, Miles Fuller (@taxbitmiles), hel….

RT @moneyradio1510: @markasher32 talks with @TaxBitMiles from @TaxBit about Crypto Tax Requirements then Jacob Schmitt CEO Arizona’s Child….

5/ Treasury hasn't helped here because it still has not issued proposed regs implementing the reporting rules. But Kraken's statement may also indicate that industry has not taken any steps toward the implementation of the systems necessary for compliance with those rules.

4/ The second argument is more interesting because Kraken is saying that it is really hard to compile the responsive data, even after 2 years. And after Congress passed information-reporting rules for crypto 18 months ago requiring access and reporting for similar data.

3/ The first argument raised leaves a lot to debate. The IRS has a ton of flexibility to obtain data as long as it is relevant to its investigative needs. Agreeing to less with Coinbase in a different case may mean nothing in this case other than to ask why more is needed.

2/ Kraken's response makes 2 arguments: (1) the IRS shouldn't get more than it got when in summoned Coinbase; and (2) that compliance is too hard because it is a lot of data that is not easily accessible.

1/ Yesterday, Kraken filed its response to the IRS's attempt to obtain user data for US customers through a John Doe summons. It has been 2 years since the IRS served Kraken with the summons. The IRS sought court enforcement earlier this year. The IRS has until May 5th to reply.

7/ Using the Ethereum Merge as an example, today's guidance implies that the new PoS ETH is not taxable. Except the Merge was a contentious hard fork and PoW ETH continued to exist after the fork. Users likely want to know which version of ETH is considered taxable--PoS or PoW.

6/ The one question that neither this guidance nor Rev. Rul. 2019-24 totally answers is how to identify, after a contentious hard fork, which property is considered the continuously-owned property vs. the new (taxable) stuff.

5/ The guidance involves a harmonious hard fork where the change was adopted by all of the users of the network. This is different from a contentious fork where not everyone makes the change and two distinct networks are created. Rev. Rul. 2019-24 addresses contentious hard forks.

4/ At a technical level, a change made to a protocol is considered a "fork" because the post-change protocol is operating differently. If users who don't make the change can still interact with the network, the change was a "soft fork." If not it is a "hard fork.".

3/ The guidance also raises another element that seems to be a stumbling block in discussions about the technology--the distinction between soft and hard forks, as well as chain-splitting (contentious) hard forks vs. non-chain-splitting (harmonious) hard forks.

2/ The guidance solidifies what seemed to be the prevailing view of many tax practitioners--a change in how transactions are verified on a blockchain is not an exchange of one type of property for materially different property under the tax code.

1/ Today, the IRS released a new piece of guidance on crypto, stating that a change to a blockchain protocol is not a taxable event. The additional clarity is a good step as the IRS continues to address unique questions arising from DLT functionality.

RT @TaxBit: Check out the latest episode of, The Bitcoin Verdict, our own @TaxBitMiles joins @HaileyLennonBTC and team to discuss crypto ta….

Thanks for reaching out! @megdematteo @CoinDesk This is a huge step by the IRS and can be an opportunity to provide some tax clarity around NFTs.

RT @TaxBit: “State governments are still in the early educational stages of learning about blockchain,” said @TaxBitMiles, “You have some p….

RT @TaxBit: "TaxBit was able to simplify our process and had all of the capabilities we were looking for in a crypto accounting software. T….

This is going to be an awesome event! . @TaxBit is home to some of the best experts in crypto, taxes, and accounting. (Those experts also happen to be some amazing women). Tune in and tell your friends . Thanks @She__Fi for putting this together.