Bar Association Seeks Clarification, Safe Harbor From IRS on Forked Coins

Wed, 03/21/2018 - 15:06
David Dinkins
Nobody is sure on the tax consequences of Bitcoin Cash, Bitcoin Gold and other forked coins. The ABA has asked for clarity, temporary safe harbor.
Cover image via U.Today

The American Bar Association has petitioned the IRS to create a “safe harbor” for US taxpayers who have received new coins through a Blockchain fork. In 2017, such hard forks became a popular way to launch new coins, with Bitcoin Cash, Bitcoin Diamond, Bitcoin Gold and others having come about from forks off the Bitcoin Blockchain. In each case, all holders of Bitcoin, whether they wanted to or not, received these new digital currencies. At present, nobody is sure how to handle taxation on forked coins, whether the fork itself represents a taxable event, or whether the value of the coins should be taxed as income or capital gains.

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About the author

David Dinkins is a freelance writer who holds a Master of Arts in history from Louisiana Tech University and has extensive teaching experience both at LSU – Shreveport and University of Phoenix. He got involved with cryptocurrency in early 2014 working as part of the Dash Core Team and have served in the role of writer/editor (mostly editor) during that time. He has edited a huge number of documents for the Core Team, including the Evolution whitepaper, the PrivateSend whitepaper, and many of Evan Duffield’s communications with the Dash Community.

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