NFT Investors Owe Billions in Taxes and IRS Is on the Case

It’s one of the hottest corners of crypto -- and now the U.S. government wants its share of the profits.

Investors and creators of nonfungible tokens -- a market that has ballooned to $44 billion, Chainalysis data show, and attracted fans from Justin Bieber to Melania Trump -- face billions of dollars in taxes and rates as high as 37%, according to tax experts. Internal Revenue Service officials who deal with tax evaders say they are gearing up for a crackdown.

The surprises looming for NFT enthusiasts when tax filing season begins this month are crypto’s latest wake-up call ...