Taxation of Decentralized Finance Transactions | CLE/CPE Course

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Course Details

Course Information

smart_display Format
On-Demand
signal_cellular_alt Difficulty Level
Intermediate
work Practice Area
Tax Law

Date & Time

event Date
Thursday, November 3, 2022
schedule Time
1:00 p.m. ET./10:00 a.m. PT
timer Program Length
90 minutes

Credit Information

This 90-minute webinar is eligible in most states for 1.5 CLE credits.
BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$347.00

CLE

CPE

ALL

This CLE/CPE webinar will provide tax counsel, accountants, and other advisers with a critical analysis of IRS tax treatment of decentralized finance (DeFi) transactions. The panel will discuss the IRS' position on the tax treatment of DeFi companies and platforms, critical tax considerations for U.S. taxpayers, entities, and tax-exempts, IRS enforcement, proper reporting for DeFi lending, staking, yield farming/liquidity mining, and other key tax issues.

Faculty

Matthew E. Rappaport

Vice Managing Partner

Falcon Rappaport & Berkman LLP

Mr. Rappaport chairs FRB’s Taxation and Private Client Groups. He concentrates his practice in Taxation as it relates to Real Estate, Closely Held Businesses, Private Equity Funds, Family Offices and Trusts & Estates. He advises clients regarding tax planning, structuring, and compliance for commercial real estate projects, all stages of the business life cycle, generational wealth transfer, family business succession, and executive compensation. Mr. Rappaport also collaborates with other attorneys, accountants, financial advisors, bankers, and insurance professionals when they encounter matters requiring a threshold level of tax law expertise. He is known for his work on complex deals involving advanced tax considerations, such as Section 1031 Exchanges, the Qualified Opportunity Zone Program, Freeze Partnerships, Private Equity Mergers & Acquisitions, and Qualified Small Business Stock. Mr. Rappaport has served as a trusted advisor for prominent real estate funds, executives of multinational corporations, venture capitalists, successful startup businesses, ultra-high net worth families, and clients seeking creative solutions to seemingly intractable problems requiring tax-focused analysis.

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Jason B. Freeman

Founder and Managing Member

Freeman Law

Mr. Freeman is a dual-credentialed attorney-CPA, author, law professor, and trial attorney. He represents clients in litigation and disputes, with a particular focus on federal and state tax controversies. Mr. Freeman handles IRS audits and other investigations and represents clients facing tax and white-collar or financial-related charges. He also advises and assists clients with tax and regulatory compliance, including domestic and international tax planning and regulatory reporting requirements. He serves on the law school faculty at SMU’s Dedman School of Law, where he teaches a course in the law of federal income taxation, and he is a frequent public speaker across the country, presenting and educating on various legal topics.

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Description

The recent explosion of the use of DeFi platforms and related transactions has brought about significant concerns regarding the taxation of these transactions for U.S. taxpayers. Tax counsel and accountants involved in DeFi transactions must understand applicable tax rules, reporting requirements for these transactions, and the tax treatment of decentralized finance.

DeFi platforms are peer-to-peer networks that allow users to conduct financial transactions without a centralized authority or financial intermediary. Instead of the typical processes applicable to banks and other financial institutions, DeFi involves the use of smart contracts that power decentralized platforms which automatically execute agreements between parties when specified conditions are met, essentially allowing the parties to bypass banks altogether for the transfer of funds.

The IRS has yet to issue guidance directly addressing DeFi transactions. This forces taxpayers to rely on general tax law principles and current IRS guidance on digital assets and virtual currency. Tax counsel and advisers must recognize applicable tax rules for DeFi lending, staking, liquidity mining, and other transactions, as well as define proper reporting and tax treatment for these transactions.

Listen as our panel discusses critical tax considerations for DeFi transactions, key tax issues for U.S. taxpayers, entities, and tax-exempts, IRS enforcement actions, and proper reporting.

Outline

Overview of DeFi
Applicable tax rules
Characterization of DeFi transactions
Reporting and compliance
State and local tax considerations

Benefits

The panel will review these and other key issues:

How are U.S. tax rules applied to DeFi platforms and transactions?
What characterization issues arise for DeFi under current tax law?
What are the reporting requirements and compliance pitfalls for DeFi transactions?
What are the state and local tax challenges of DeFi transactions?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

Identify tax rules applicable to DeFi transactions
Ascertain a complete understanding of the characterization of DeFi under current tax law
Recognize key reporting requirements and tax compliance issues related to DeFi
Ascertain methods in minimizing tax implications of DeFi transactions

Field of Study: Taxes
Level of Knowledge: Intermediate
Advance Preparation: None
Teaching Method: Seminar/Lecture
Delivery Method: Group-Internet (via computer)
Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
Prerequisite: Three years+ business or public firm experience preparing income tax forms and schedules at mid-level within the organization, supervising other preparers/accountants. Specific knowledge and understanding of sale and exchange transactions; familiarity with virtual currency structures, foreign information reporting requirements.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.