Bloomberg journalists predict the most difficult tax reporting season for American investors, lovers of digital art. We are talking about transactions with NFT tokens, the volume of which has grown over the past six months to $40 billion.
According to journalists, the lack of clear rules for displaying such transactions in the declaration will give rise to cases of tax evasion, which will be punished by massive fines from the US Tax Department (IRS).
Despite the absence of a legislative framework for NFTs, the fact of receiving income remains a fact subject to mandatory declaration. In addition, the IRS may refer to the infrastructure package adopted by the US Congress, obliging to report for any crypto-transaction.
In the form of the declaration itself, the cryptocurrency is accounted for by a separately added column with a direct question about its ownership and transactions, providing for the answer “Yes” or “No”. Incorrect information is already punishable by law, and an affirmative answer will require the taxpayer to display transaction details.
The IRS hunt for NFT holders will have a negative impact on the cryptocurrency market, especially hitting the service tokens of marketplaces. According to Bloomberg, the tax department will have to clarify the size of the fee rate, deciding whether to attribute indivisible tokens to art and collectibles or ordinary cryptocurrencies. If you choose the first option, taxes on income can rise to the level of 37%.
The actions of the IRS will create a precedent for the tax authorities of other countries, which will increase pressure on the cryptocurrency market. In this case, Metaverse projects will turn from hot topics into outsiders, significantly lose in the price of tokens and the potential to attract investments.
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