Is it Already that Time? Congressional Digital Taxation Proposals and Related IRS Guidance

Congressional bills have been introduced that address the taxation of digital assets (e.g., Lummis-Gillibrand Responsible Financial Innovation Act and the Virtual Currency Tax Fairness Act). And, IRS has provided recent guidance on the topic.  The bills, which are each still in committee, would exempt from tax up to $200 of income or gain per transaction (adjusted for inflation) from virtual currency used for the purchase of goods or services in a "personal transaction” and are designed to require IRS to adopt regulations that defer tax from forks, airdrops, staking and other gains that accrue to a digital asset through market transactions-- until the gains are disposed.

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