Proof of work (PoW)—one of the consensus methodologies through which blockchain (digital ledger) transactions can be validated—relies on data miners whose mining activities involve solving complex mathematical calculations. This article discusses key tax issues for miners and the IRS’s preliminary views involving taxation of Bitcoin PoW mining activities.
Taxation of Virtual Currency Mining Activities
By McDermott Will & Emery on September 11, 2020
Posted In IRS Guidance, Tax Reform