States Face Tax Losses from Unreported Cryptocurrency Gains

This week in state tax news: The Multistate Tax Commission held its annual meeting in Anchorage, Alaska this week and examined tax code uniformity strategies addressing cryptocurrency, digital products and the reach of state business taxes. Meanwhile, Georgia addressed the tax status of unborn children and Massachusetts approved a plan to legalize and tax sports betting.

States are losing significant tax revenue attributable to gains from cryptocurrency transactions, but shifting tens of millions of digital currency investors into full compliance could take years, tax authorities learned at the MTC’s annual meeting this week.

The state cryptocurrency tax gap is ...