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IRS Fell Short of Taxing Bitcoin, Ethereum Splits, CPAs Say

Feb. 28, 2020, 6:57 PM

Recent IRS guidance may not apply to the Ethereum or Bitcoin chain splits that occurred in 2016 and 2017—even though they appear to be the agency’s intended targets, a national CPA organization said.

“The current ruling, as written, does not technically apply to those cryptocurrency events,” the American Institute of CPAs said in a Feb. 28 letter to the IRS.

  • The agency’s revenue ruling, released in October, says that cryptocurrency users are required to pay income tax on new coins distributed in an “airdrop” following a transaction known as a “hard fork.” A hard fork occurs when there’s change ...

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