Federal Tax, Tax

J5 Issues Bulletin on NFT Taxpayer Best Practices

The Joint Chiefs of Global Tax Enforcement (J5) has issued a bulletin containing best practices for taxpayers who’ve purchased, or are planning to purchase, non-fungible tokens (NFTs). The J5 is a grouping of the tax agencies of the U.S., Canada, U.K., Netherlands and Australia. NFTs can be anything digital, including music, that can be considered art. They’ve been described as an evolution of fine art collecting, only digital. As with all new technology, criminals are looking for ways to exploit NFTs. The J5 bulletin isn’t meant to be an all-inclusive list of risks associated with NFTs. Rather, it provides indicators that should raise red flags. Read the J5’s report. Questions? Reach out to Cg Tax, Audit & Advisory. © 2022