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Nicholas Mowbray Comments on Potential Taxation of Unwanted Cryptocurrency

News / October 30, 2019

Associate Nicholas Mowbray is quoted in an article published Oct. 30, 2019, by Bloomberg Law. The article, “Unwanted Cryptocurrency Could Trigger Tax Under US Policy,” discusses a recent revenue ruling from the IRS that may require cryptocurrency holders to pay tax on coins they received unwittingly, or against their wishes.

Although the IRS has said taxpayers won’t be treated as receiving the cryptocurrency until that amount is credited to them and they can transact with it, Mowbray told Bloomberg, “The IRS should potentially reconsider whether ‘dominion and control’ is enough to give rise to income, or whether there should only be income where the taxpayer acts in a way that shows their intent to exercise dominion and control over a cryptocurrency.”

Read the article (registration required).