NFTs: Taxation And Enforcement Are Around The Corner
April 7, 2022 | The Insider: White Collar Defense and Securities Enforcement
While much has been written regarding the IRS’s efforts to get its arms around the taxation of cryptocurrencies, Bitcoin, Ethereum and other virtual currencies are not the only digital assets that raise challenges for tax compliance. The exploding popularity of non-fungible tokens (or “NFTs”) has raised questions about how they will be taxed and whether the IRS will pursue enforcement actions against taxpayers who fail to accurately report NFT transactions.
