The AICPA has submitted recommendations to the IRS and Treasury Department for guidance on reporting transactions with virtual currency and digital assets.
The institute is calling for clarification on the definition of virtual currency and digital assets as well as the tax treatment of non-fungible tokens (NFTs) as collectibles.
The AICPA also recommends considering the administrative burden of the look-through analysis on taxpayers and clarifying whether the legislative intent of the collectible tax rate applies to NFTs.
“Further guidance is needed for taxpayers to correctly calculate and report their transactions involving digital assets and NFTs,” the AICPA stated. Learn more.