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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Corporate Tax

Date & Time
  • event Date

    Thursday, December 1, 2022

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

$247.00
CPE
ALL

This course will provide tax professionals and advisers guidance on the state taxation of virtual currency and nonfungible tokens (NFTs). The panel will discuss the state tax implications of selling cryptocurrency and NFTs, accepting virtual money as payment, the application of sales tax, and planning techniques to minimize tax liability.

Faculty

John E. Hayashi
Managing Director, Tax
BPM

Mr. Hayashi serves as a Managing Director of Tax at BPM, with nearly 30 years of public accounting and private industry experience in State and Local Taxes (SALT). He helps his clients respond to SALT issues, with a specialization in sales tax and use tax that's currently in high demand after the Supreme Court's decision in South Dakota v. Wayfair, Inc. (2018). Mr. Hayashi is a leader in BPM's SALT group, which serves as a single point of contact for clients to analyze their state and local tax liabilities, as well as state and local tax deductions. He listens to client needs to plan and implement strategies that minimize identified liabilities.

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Edward L. Froelich
Counsel
McDermott Will & Emery, LLP

Mr. Froelich represents clients in audit and litigation on all Federal tax issues. He is a former trial attorney of the Department of Justice Tax Division. In private practice he continues to litigate cases and represents clients in administrative controversies at both the audit and appeals level before the IRS. He represents large public companies, privately-held companies, partnerships, trusts, and individuals, successfully dealing with a variety of issues including international tax, transfer pricing, income tax accounting, research credit, and accounting method issues. He also advises on related procedural issues including obligation to file information returns such as those relating to employment taxes or to payment card transactions.

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Rebecca M. Balinskas
Of Counsel
Morrison Foerster

Mrs. Balinskas is of counsel in the State and Local Tax Group in Morrison & Foerster’s New York office. Her practice focuses on state and local tax controversies at the audit, administrative, and judicial levels. Mrs. Balinskas’ practice encompasses matters regarding sales and use tax, property tax, franchise and income tax, gross receipts tax, insurance tax, and telecommunications tax, among others.

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Description

As more businesses accept virtual currency, consumers can exchange cryptocurrency for many goods and services. In addition to the federal tax treatment of virtual currency, there are state tax implications of transactions involving cryptocurrency and NFTs that businesses and investors must grasp and consider.

Buying, selling, and trading digital assets incurs tax consequences. The IRS treats virtual currency as property for tax purposes; disposing of property may result in a capital gain or loss. A taxpayer who receives virtual currency payments must, in computing gross income, include the fair market value of the virtual currency, measured in U.S. dollars, and the date the taxpayer received it.

Based on the IRS treatment of virtual currency and state conformity efforts, the sale of virtual currency may also be subject to state sales tax. This is an evolving area of the law, and states may impose a sales tax based on the electronic transmission of virtual currency or the sale of NFTs--or label it as foreign currency sales tax. The sales tax question brings new challenges in complying with state sales tax collection and reporting obligations.

Listen as our panel guides tax executives and advisers on the state tax implications of transactions involving virtual currency and NFTs and the critical considerations in the application of sales tax on the sale of or accepting virtual currency as payment for goods and services.

Outline

  1. Overview of federal taxation of virtual currency
  2. State conformity to IRS treatment of virtual currency
  3. Sales taxation cryptocurrency transactions
  4. Taxation of NFTs
  5. Key considerations and tax planning techniques to minimize state tax liability on virtual currency and NFTs

Benefits

The panel will discuss these critical areas:

  • IRS treatment of virtual currency and current state regulations
  • Sales tax implications of accepting virtual currency as payment
  • Mining virtual currency and challenges for investors
  • Minimizing state tax liability in virtual currency transactions

NASBA Details

 

Learning Objectives

After completing this course, you will be able to:

  • Understand federal taxation of virtual currency.

  • Identify IRS guidance on digital assets and virtual assets.

  • Recognize the various ways states tax cryptocurrency.

  • Ascertain multistate treatment of NFT sales.

  • Determine state conformity to IRS treatment of virtual currency.

  • Identify FBAR and FATCA considerations.

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite:

    Three years + business or public firm experience at mid-level within the organization, preparing complex tax forms and schedules, supervising other preparers/accountants. Specific knowledge and understanding of state taxation of digital assets, cryptocurrency, non-fungible tokens, treatment of NFT sales, federal taxation of virtual currency, sales and use taxation familiarity with IRS treatment of virtual currency and NFT state sales taxes.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.