New IRS Cryptocurrency Guidance on Hard Forks and Airdrops: Rev. Rul. 2019-24, Audit Risks for U.S. Taxpayers
Recent IRS Audit Initiatives, Reporting, and Compliance Issues
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Tax Law
- event Date
Thursday, February 27, 2020
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
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BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
This CLE/CPE course will provide an in-depth analysis of recently released IRS Revenue Ruling 2019-24 and the updated frequently asked questions (FAQs) regarding taxation of cryptocurrency. The panel will discuss the key provisions of Rev. Rul. 2019-24, recent IRS initiatives to identify and tax virtual currency, and new information on gain/loss calculations and gifts of cryptocurrency. The panel will also offer best practices in documenting and reporting cryptocurrency transactions in light of new IRS guidance.
Ms. Ziering offers guidance to individual and corporate clients who require sophisticated tax advice concerning their domestic tax issues, offshore assets, and U.S. reporting requirements. Clients rely on her deep knowledge of tax controversies and tax litigation, as well as her experience with related civil, criminal, and regulatory proceedings. She represents both individuals and corporations before the U.S. Tax Court, federal and state courts, and administrative agencies, including the Internal Revenue Service, the Department of Justice, and other federal and state government regulators.
Mr. Jaramillo advises multinational corporations, financial institutions, and individual clients on a broad range of tax matters, including tax controversies, risk management and international compliance, and cross-border structuring. He also utilizes his Spanish fluency to advise Spanish-speaking clients.
On Oct. 9, 2019, the IRS issued further guidance on the tax treatment of cryptocurrency. Revenue Ruling 2019-24 provides explicit insights into the taxation of "hard forks" or "airdrops" for those owning and exchanging cryptocurrencies. The IRS also updated its FAQs, providing guidance on other cryptocurrency issues.
In the IRS' first guidance on cryptocurrency since 2014, Rev. Rul. 2019-24 addresses (1) the taxation of a hard fork of cryptocurrency if there is no receipt of new cryptocurrency, and (2) the taxation of an airdrop after a hard fork when the taxpayer receives new cryptocurrency. The revenue ruling explains that cryptocurrency from an airdrop is taxable when the taxpayer can exercise "dominion and control" over the currency, not necessarily when the transaction is recorded in the distributed ledger (i.e., blockchain).
Also, new IRS FAQs provide critical guidance on the taxation of certain cryptocurrency transactions, identifying units sold and the reporting obligations of taxpayers. Tax professionals and advisers must recognize and understand the nuances of the tax treatment of cryptocurrency and identify audit risks.
Listen as our expert panel discusses the new IRS guidance on cryptocurrency, the calculation of gains and losses, handling the taxation of hard forks and airdrops, and the questions that remain surrounding taxation of virtual currency.
- Tax treatment of cryptocurrency
- Impact of new Rev. Rul. 2019-24; hard forks and airdrops
- Updated IRS FAQs on cryptocurrency transactions
- Gain/loss calculations
- Gifts of virtual currency
- Charitable donations
- Current IRS focus and remaining questions for taxpayers
- IRS cryptocurrency tax reporting and compliance "educational" letters
The panel will review these and other key issues:
- What is the state of the current IRS initiative to tax virtual currency transactions?
- What are hard forks and airdrops in the context of virtual currency transactions?
- When and how are hard forks and airdrops taxed?
- How should holders document virtual transaction activity?
- What are the best practices in minimizing and handling an IRS audit stemming from cryptocurrency activities?
Learning Objectives
After completing this course, you will be able to:
- Understand the state of current IRS initiatives to tax virtual currency transactions
- Identify hard forks and airdrops in the context of virtual currency transactions for tax purposes
- Determine when and how hard fork and airdrop cryptocurrency transactions are taxed
- Recognize key challenges in documenting and reporting cryptocurrency activities and methods to overcome them
- Ascertain best practices in handling an IRS audit stemming from cryptocurrency activities
- 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 complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.
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.
Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).
