Internal Revenue Services (IRS) has finally revealed the IRS cryptocurrency Tax guidelines in the wake of cryptocurrency hard forks.
A recent issue by the United States Internal Revenue Service aimed to initialize new ruling- “Revenue Ruling”.
Applicable for the years 2019-2024, it primarily addresses two questions, followed by a six-page evaluation answering those questions. The issue was published to address the taxes levied owed to a cryptocurrency diversion of network protocol- in technical terms, a “hard-fork”.
IRS cryptocurrency Tax guidelines for a hard fork
The questions asked were as follows:
1) In case a taxpayer does not receive units of a new cryptocurrency, does the taxpayer have a total income below §61 (sixty-one) of the Internal Revenue code owed to a hard fork?