Tax season is upon us—the filing deadline to submit 2021 tax returns and pay tax owed is April 18, 2022. The IRS now asks all Americans to declare whether they’ve had crypto dealings or not. “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?,” reads the question on top of Form 1040. Don’t let the wording confuse you. By virtual currency, the IRS means crypto, even though it doesn’t view crypto as a currency–-it’s con...

Should a person be taxed when they receive a staking reward in the form of cryptocurrency—or when they sell it? That's the question at the heart of a lawsuit being decided in a U.S. federal court, after a Tezos user was denied a refund request from the Internal Revenue Service on taxes owed for earning staking rewards. The case has caused some confusion about the IRS's current stance regarding these kinds of rewards. In reality, however, the IRS has only partially capitulated, saying it would re...

This post is part of The Rollup, Decrypt's curated collection of stories presented in partnership with Koinly. If you currently hold cryptocurrency in your portfolio or you have traded crypto over the past year, it’s high time you started figuring out your crypto tax obligations. That can sound like a daunting prospect—even if you don’t owe anything in taxes. Browse through crypto social media, and you'll find that the main tax preparation advice given to newbie traders is to make a note of the...