While policymakers continue to understand how digital assets fit into the financial system, many existing tax regulations apply to digital asset and cryptocurrency investors. So it’s important to continue staying informed on new federal policies, as well as more recent Treasury Department guidance.
For instance, in 2019, the Internal Revenue Service continued its discovery and adoption of cryptocurrencies and digital assets into the United States financial system by issuing long awaited updates on the treatment of “hard forks” and “air drops.”
With the release of IRS Ruling 2019-4, the agency provides guidance on how cryptocurrency holders can account for their digital asset holdings.
