Taxation of Digital Asset Transactions Under Current Tax Law: Cash Transactions, Reporting, Tax Planning

The Internal Revenue Service Code and recent regulations and guidance include significant provisions impacting digital asset transactions and reporting requirements. Tax professionals must understand the impact of current tax rules and critical issues regarding the tax treatment of digital asset transactions to properly advise and implement planning techniques to minimize tax liability to taxpayers.

Recent regulations broadened the definition of "digital asset" as such relates to blockchain and redefines "broker" to include persons providing services to transfer digital assets, in addition to other vital provisions. Tax professionals must evaluate the transactions and practices of taxpayers engaged in digital assets and cryptocurrency.

In addition, current tax regulations and the existing IRS guidance have significant implications on cross-border transactions, providing that the source of income from digital transactions is the place where the transaction occurred, potentially subjecting taxpayers to multijurisdictional tax obligations.

Furthermore, taxpayers must also consider the impact of other federal tax provisions such as the base erosion anti-abuse tax (BEAT) regime, the U.S. tax treatment under the controlled foreign corporation (CFC) regime, and the foreign-derived intangible income (FDII) regime.

Listen as our panel discusses key provisions and challenges under current tax law for digital asset transactions, IRS tax treatment reporting requirements, potential issues stemming from BEAT, GILTI, FDII rules, and other essential items impacting taxpayers engaging in digital asset transactions.

1. Recent IRS regulations and applicable tax rules
2. Sourcing of income rules and challenges
3. Tax implications of BEAT, GILTI, and FDII rules concerning digital asset transactions
4. Best practices for tax counsel and advisers to ensure tax compliance

The panel will discuss these and other key issues:

• Impact of U.S. tax law on digital asset transactions
• Recent IRS regulations covering the tax treatment of digital asset transactions and cryptocurrency
• Sourcing rules and pitfalls to avoid unnecessary tax liability
• Additional federal income tax implications; BEAT, treatment of CFCs, FDII

Learning Objectives

After completing this course, you will be able to:

• Understand IRS treatment of digital assets and cryptocurrency
• Recognize factors in the application of sourcing rules and pitfalls to avoid unnecessary tax liability
• Identify the tax implications of BEAT, GILTI, and FDII rules concerning digital asset transactions and cryptocurrency

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or professional experience at mid-level within the organization, preparing complex tax forms and schedules. Specific knowledge and understanding of corporate and partnerships taxation, international taxation, deferred foreign-source income, earnings and profits, sales and use taxation; tax implications in the purchase and sale of assets.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).