Monday July 7, 2025

IRS: Frozen Crypto Rewards Taxable Despite Account Lockdowns

IRS: Frozen Crypto Rewards Taxable Despite Account Lockdowns

by Kevin Helms November 2, 2024 1 min read

(Originally posted on : Bitcoin News )

Crypto rewards received before an account freeze are taxable in the year they’re received, even if holders can’t access their funds later, the IRS says. IRS Clarifies Tax Rules for Digital Assets in Locked Accounts The Internal Revenue Service (IRS) issued a memorandum in October, addressing the tax obligations of digital asset rewards in accounts […]

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