The US IRS agency stated that stablecoins and NFTs are more likely to the digital assets, so rules on NFTs will be the same as cryptocurrencies.
In this phase of the crypto sector, crypto & blockchain technology are no longer limited to the trading & investment in assets but now a huge number of use cases are available at a practical level where crypto assets are playing a very important role. All these things are creating a problem for the corresponding regulator to regulate the crypto activities under precise rules & policies.
Recently the US Internal Revenue Service (IRS) released new guidelines for the crypto industry’s businesses & participants to follow the updated guidelines to report the activities associated with the digital asset.
“Digital assets include (NFTs) and virtual currencies, such as cryptocurrencies and stablecoins. If a particular asset has the characteristics of a digital asset, it will be treated as a digital asset for federal income tax purposes.”
The updated digital assets reporting guidelines are giving full hints that the agency is ready to include all kinds of new developments in the crypto sector.
In 2021 IRS digital assets reporting guidelines, there was nothing about NFTs, instead, there was only a term used “virtual currency”.
In the new reporting guidelines, the IRS agency stated that every taxpayer should report their NFTs-related reports without leaving blank spaces, if they are involved the tick or untick.
“The question must be answered by all taxpayers, not just taxpayers who engaged in a transaction involving digital assets.”
Earlier in September of this year, IRS received authority from the US district court to catch all those actors which are trying to avoid tax on their crypto transactions. Few experts noted that the future of the crypto space will be under a more expanded crypto regulatory framework because of the ongoing efforts by the US government agencies in this space.