Tax Resolution Attorney John P. Willis Provides Information Regarding The Various Activities Considered Taxable In The New World Of Non-fungible Tokens (NFTs).
Tax resolution attorney John Willis, CEO, and founder of IRSALLSTAR, helps taxpayers stay up-to-date on the most current IRS guidelines regarding the emerging world of NFTs.
Fairhope, AL, July 29 2022: Tax Attorney John Willis, CEO and founder of IRSALLSTAR.com, recently published an article on his website entitled “When NFTs Make You Say WTF,” in which Mr. Willis acknowledge the confusion surrounding the taxation of NFTs.
Willis states, “We’ve seen the arrival of cryptocurrency. We’ve seen it rise to great heights and are now watching it plunge to new lows. Some investors have made millions, while some have lost millions.” He continues, “The IRS has been trying to figure out how to tax crypto for years, and finally, in 2014 started offering tax guidance. Even the smallest crypto investors now know the IRS is able to track their trades.”
Willis turns to experts in the crypto and NFT world, who as he states, “According to one source, “The 2014 IRS policy, however, only applies to fungible (identical in value and interchangeable) cryptocurrency, but the agency has not ruled out taxing other digital assets as they develop. A new kind of virtual token has evolved, the nonfungible token (NFT). In other words, these are unique and not interchangeable with other NFTs. NFTs can represent, for example, unique physical assets like real estate or artwork, or potentially intellectual property interests like those in licenses or written creative works.” https://www.zenledger.io/guides/nfts-crypto-taxes
“Ethereum defines an NFT as a token “used to identify something or someone in a unique way … [like] collectible items, access keys, lottery tickets, numbered seats for concerts and sports matches, etc.”
“As you can imagine,” Willis writes, “NFTs are now giving the IRS something new to wrap their arms around, track and tax. Think about the confusion for taxpayers using cryptocurrency to buy NFTs! If you are dealing in NFTs, or thinking about doing so, you’ll want to keep the IRS in mind.” Willis provides and exerpt from an article that offers “the current IRS guidance regarding NFTs.”
Willis states, “If you are exploring NFTs, it’s important to avoid any trouble with the IRS by staying IRS compliant. It’s a complicated and confusing new world for taxpayers. I’ll continue to provide tax information about NFTs and cryptocurrency, and help clients stay compliant.”
The entire article can be read at: LINK HERE
ABOUT JOHN WILLIS
Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 23 years and, he brings together an abundance of skills and experience that can be of assistance to almost anyone.
ABOUT THE IRSALLSTAR TEAM
The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed, and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities. The entire blog can be found at http://irsallstar.com/blog/irs-tax-controversy-even-death-cant-stop-the-irs.php
To learn more about Mr. Willis and his law firm please visit http://irsallstar.com or call toll-free 877-254-4254.