IRS Guidance

Definition ∞ IRS guidance comprises official interpretations, rules, and instructions issued by the Internal Revenue Service concerning tax laws. For digital assets, this includes notices, revenue rulings, and frequently asked questions that clarify how existing tax principles apply to cryptocurrencies and other tokens. This guidance helps taxpayers and businesses understand their obligations for reporting and paying taxes on digital asset transactions. It provides essential clarity for compliance.
Context ∞ The evolving nature of digital assets necessitates continuous updates and expansions of IRS guidance, creating a dynamic regulatory landscape. Discussions frequently center on the tax treatment of new digital asset activities, such as staking rewards, DeFi lending, and non-fungible tokens (NFTs). Future IRS publications are expected to address remaining ambiguities and provide more comprehensive frameworks for digital asset taxation.