Cryptocurrency

IRS: “cryptoassets received for completing micro-tasks are subject to income tax”

The Internal Revenue Service (IRS) has provided guidance on how to declare cryptocurrencies received for completing micro-tasks through crowdsourcing or other platforms.

In the service document created by the IRS in late June and released last week, states that received from running on crowdsourcing platforms mikrozadach cryptocurrency considered taxable income.

The document was created in response to a request from the IRS Small Business and Sole Proprietors Department. It addresses the question of whether convertible virtual currency received by an individual for completing microtasks through a crowdsourced or similar platform is considered taxable income.

“Yes, a taxpayer who receives a convertible virtual currency in exchange for completing a microtask through a crowdsourced platform is considered to have received a reward in exchange for performing a service, and the resulting cryptoasset is taxed as regular income,” writes Ronald Goldstein, author of the paper, from the department taxation and accounting IRS.

He notes that there are many micro-tasks for which the user can be paid money. For example, “a firm may offer payments to employees in BTC or other convertible virtual currency for processing data or viewing images.”

“Other examples include paying a cryptoasset in exchange for downloading a specific app from an app store and posting a positive review, downloading games and reaching certain milestones in a game, participating in online quizzes and surveys, or registering accounts with various online services. The cost of a cryptoasset paid in exchange for completing a microtask is often a small amount, which can be less than $ 1, ”the document says.

Recall that last week the Internal Revenue Service again sent out letters to the owners of cryptocurrencies, who, according to the agency, filed an incorrect tax return, demanding to pay taxes on cryptocurrency income.

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