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IRS Says Crypto Protocol Changes Are Not Taxable

IRS Says Crypto Protocol Changes Are Not Taxable

On April 21, 2023, the IRS released Chief Counsel Advice Memorandum 202316008 (the “CCA”), which provides that cryptocurrency protocol changes are not treated as realization events and do not give rise to gross income for cryptocurrency holders, provided that the holder does not receive property, including additional units of cryptocurrency, as a result.








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