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Cryptocurrency taxation; cryptocurrency; IRS Notice 2014-21; cryptocurrency mining; property method; currency method; currency volatility; digital wallet; internal revenue service; property basis; straddles; tax avoidance
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Debugging Irs Notice 2014-21: Creating A Viable Cryptocurrency Taxation Plan, Alex Ankier
Debugging Irs Notice 2014-21: Creating A Viable Cryptocurrency Taxation Plan, Alex Ankier
Brooklyn Law Review
In 2014, the Internal Revenue Service (IRS) issued Notice 2014-21 in an attempt to address issues with cryptocurrency taxation, essentially reaching the conclusion that cryptocurrency must be treated like property for purposes of taxation. In the time since the IRS pronouncement, several academics have called for an alternative treatment known as “currency treatment.” Each treatment inadequately addresses the comprehensive issues surrounding cryptocurrency because they offer wholesale treatment to nuanced issues with valid concerns from each side. To truly allow this emerging industry to flourish and gain societal acceptance, artful policymaking is required. This note provides an example of such policymaking. …