Cryptocurrencies and the IRS: How to Report Gains, Losses, and Mining Income

• Author(s): Alex Porto Alegre de Almeida
• Paper ID: 1708305
• Page: 506-510
• Published Date: 30-06-2022
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 5 Issue 12 June-2022

Abstract

The rise of cryptocurrencies has created significant challenges for tax administration and compliance. In the United States, the Internal Revenue Service (IRS) classifies cryptocurrencies as property, requiring taxpayers to report capital gains, mining income, and airdrops using established tax principles. This article outlines the key regulations governing cryptocurrency taxation, including IRS Notice 2014-21 and Revenue Ruling 2019-24. It further discusses reporting requirements, recordkeeping standards, and the implications of classification as a business or hobby for mining activities. With growing enforcement measures, taxpayers must understand the tax consequences of virtual asset activities to ensure full compliance.

Keywords

Cryptocurrency, IRS, capital gains, mining income, property classification.

Citations

IRE Journals:
Alex Porto Alegre de Almeida "Cryptocurrencies and the IRS: How to Report Gains, Losses, and Mining Income" Iconic Research And Engineering Journals Volume 5 Issue 12 2022 Page 506-510

IEEE:
Alex Porto Alegre de Almeida "Cryptocurrencies and the IRS: How to Report Gains, Losses, and Mining Income" Iconic Research And Engineering Journals, 5(12)