In a June letter to the IRS, the American Institute of CPAs (AICPA) responded to IRS Notice 2023-27 about non-fungible tokens (NFTs). In it, the organization expressed a need for additional guidance and made several recommendations. Among the AICPA’s suggestions to the IRS and U.S. Treasury Department were that the agencies should: clarify and define virtual currency and digital assets; consider the administrative burden of analysis on taxpayers; and explain whether the legislative intent of the tax rate for collectibles applies to NFTs. The AICPA hopes forthcoming IRS guidance “will provide greater certainty to taxpayers … and better ensure consistent application of the tax law.”
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