Lisa Zarlenga

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Bipartisan members of the House are advocating for more clarity in the tax law as it relates to taxation of cryptocurrency. First, on April 9, Representative Warren Davidson (R-OH), a member of the House Financial Services Committee, reintroduced legislation that would provide clarity on certain tax and securities law issues related to cryptocurrency.  The bill, entitled the “Token Taxonomy Act of 2019,” resembles the original bill that Davidson introduced in the 115th Congress with Congressional…
The Global Blockchain Business Council (GBBC) recently published its 2019 Annual Report, “Beyond the Hype: Building Blockchains for Real World.” The report provides a comprehensive update on the global regulatory landscape surrounding blockchain technology along with an overview of some of the blockchain solutions being built by GBBC members. Steptoe authored an overall insights piece, titled “Regulation in the US: Where are We, and Where are We Going?,” which looks at where the United States…
The Internal Revenue Service (IRS) made a pair of announcements on July 2 that it is increasing its focus on taxpayers who avoid their tax obligations using cryptocurrency. Background By way of background, in April 2014, the IRS issued Notice 2014-21, which generally provided that “convertible virtual currency” is treated as property, not currency, for tax purposes and explained, in question and answer format, the application of existing general tax principles to transactions using convertible…
On May 21st, Alan Cohn hosted the 217th episode of The Cyberlaw Podcast. We took a deep dive into all things blockchain and cryptocurrency discussing recent regulatory developments and the current state of play of the industry. Jack Hayes discusses the status of regulation surrounding cryptocurrencies including anti-money laundering and sanctions compliance, the Department of Treasury’s letter regarding initial coin offerings (ICOs), and the New York Attorney General’s questionnaire for cryptocurrency exchanges. Lisa Zarlenga provides an…
After a year-long fight with the IRS on turning over customer data, Coinbase both won and lost.  It won in that the court significantly narrowed the type of information that it was ordered to turn over to the IRS.  It lost in that it was still required to turn over data on approximately 13,000 customers.  For the 13,000 customers this means that the IRS may now be contacting you to let you know that you…
Background Before 2014, the treatment of virtual currency for tax purposes was somewhat of an open question.  That is, would it be treated like a currency?  Maybe a foreign currency?  Or would it be treated like property?  Or maybe a commodity or a derivative?  The IRS took initial steps to answering that question in Notice 2014-21, where the IRS asserted that virtual currency would be treated like property. A lot of practitioners thought that…