Tax on income you never earned? It’s possible after Ethereum’s Merge
2022.09.27 20:37
Tax on income you never earned? It’s possible after Ethereum’s Merge
After much buildup and preparation, the Merge went smoothly this month. The next test will come during tax season. Cryptocurrency forks, such as , have created headaches for investors and accountants alike in the past.
While there has been progress, the United States Internal Revenue Service rules still weren’t ready for something like the Ethereum network upgrade. Nonetheless, there seems to be an interpretation of IRS rules that tax professionals and taxpayers can adopt to achieve simplicity and avoid unexpected tax bills.
Justin Wilcox is a partner at the Connecticut accounting and advisory firm Fiondella, Milone & LaSaracina. He founded the firm’s cryptocurrency practice in 2018, providing tax and advisory services to Web3 organizations and crypto investors. He mines cryptocurrencies like DOGE (though he still supported the Ethereum Merge). He holds various cryptocurrencies and NFTs, including coins mentioned in this article.
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