Tax News Update    Email this document    Print this document  

March 21, 2023
2023-0529

IRS issues guidance on treatment of nonfungible tokens as collectibles and requests comments

The IRS has issued preliminary guidance (Notice 2023-27) on the tax treatment of certain nonfungible tokens (NFTs) as IRC Section 408(m) collectibles. The notice explains how the IRS intends to determine whether an NFT constitutes an IRC Section 408(m) collectible, notes that further guidance will be coming, requests comments on any aspect of NFTs that might affect their treatment as collectibles and invites public comments on a list of specific questions.

A Tax Alert is forthcoming.

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement