As luck would have it, the IRS recently released an internal memorandum fleshing out its stance on the taxation of virtual currency received in exchange for providing services. The memorandum describes the taxation of virtual currency received in the “crowdsourcing labor market”—for example, for performing microtasks or other projects—but its principles are applicable much more broadly. For starters, the IRS memorandum poses the following question:Is convertible virtual currency received by an individual for performing a microtask through a crowdsourcing or similar platform taxable income? As such, transactions involving convertible virtual currency are subject to the same general tax principles that apply to transactions involving property. These general rules, according to the IRS, all apply to income received in the form of cryptocurrency.

Source: Forbes September 03, 2020 17:37 UTC