IRS targets NFT

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In the tax returns of US citizens for 2022, the section on cryptocurrencies has changed. The wording "virtual currency" appearing in the document was changed by the IRS Tax Department to the concept of "digital asset".

Taxpayers must now report to the IRS for any transactions with this type of instrument.

Last year, they informed the authorities about transactions with virtual currency, which by definition is a unit of account, a means of storage and exchange. 

A digital asset, according to the IRS clarifications, is any representation of digital value on the blockchain. The agency specifically clarifies that it can also be an NFT token.

The value of such unique digital assets can be millions of dollars. The IRS expects to significantly raise fees from cryptocurrencies in the new tax period.

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