New Jersey Cryptocurrency Tax Regs Follow IRS Guidelines

New Jersey has become one of the first U.S. states to address the tax treatment of virtual currencies, issuing guidance describing how taxpayers should account for transactions under its corporation business tax, income tax, and sales and use tax.

In a technical advice memorandum dated March 21, the state Division of Taxation said it would conform to the primary Internal Revenue Service guidance applicable to Bitcoin and other cryptocurrencies, including IRS Notice 2014-21, Rev. Rul. 2019-24, and IRS Chief Counsel Memorandum 202114020. Those guidance statements generally view virtual currencies as property and require taxpayers to determine the ...