Tax Treatment of Cryptocurrency Still a Challenge for States

July 8, 2022, 4:35 PM

This week in state tax news: This week several states issued guidance or advanced plans designed to ease confusion over the tax treatment of cryptocurrencies and non-fungible tokens. Meanwhile, governors in Arkansas and West Virginia called for special legislative sessions aimed at cutting taxes in response to mounting surpluses in state treasuries.

Taxing transactions involving cryptocurrency and non-fungible tokens remains a sea of confusion, but several states took steps this week to at least understand these digital assets and create frameworks for long-term tax compliance.

Let’s start in New York, where the Department of Taxation and Finance issued …

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