PANews reported on November 2 that according to News.bitcoin, the U.S. Internal Revenue Service (IRS) issued a memorandum in October that despite the account being frozen, crypto rewards received are still subject to tax in the year they are received, even if the holder cannot use their funds later. The guidance was sent to Michael R. Fiore of the IRS Small Business/Self-Employed Division, which studies a hypothetical taxpayer (referred to as "Taxpayer A") who holds cryptocurrency in an account on a bankrupt platform and received rewards, such as staking bonuses, before the account was frozen.
IRS: Crypto rewards received after account freeze still subject to tax
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