Taxation of Decentralized Finance Transactions: IRS Guidance, Tax Issues for DeFi Lending, Staking, and Liquidity Mining

A live 90-minute premium CLE/CPE video webinar with interactive Q&A

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Thursday, November 3, 2022

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

(Alert: Event date has changed from 9/13/2022!)

or call 1-800-926-7926

This CLE/CPE webinar will provide tax counsel, accountants, and other advisers with a critical analysis of IRS tax treatment of decentralized finance (DeFi) transactions. The panel will discuss the IRS' position on the tax treatment of DeFi companies and platforms, critical tax considerations for U.S. taxpayers, entities, and tax-exempts, IRS enforcement, proper reporting for DeFi lending, staking, yield farming/liquidity mining, and other key tax issues.

Description

The recent explosion of the use of DeFi platforms and related transactions has brought about significant concerns regarding the taxation of these transactions for U.S. taxpayers. Tax counsel and accountants involved in DeFi transactions must understand applicable tax rules, reporting requirements for these transactions, and the tax treatment of decentralized finance.

DeFi platforms are peer-to-peer networks that allow users to conduct financial transactions without a centralized authority or financial intermediary. Instead of the typical processes applicable to banks and other financial institutions, DeFi involves the use of smart contracts that power decentralized platforms which automatically execute agreements between parties when specified conditions are met, essentially allowing the parties to bypass banks altogether for the transfer of funds.

The IRS has yet to issue guidance directly addressing DeFi transactions. This forces taxpayers to rely on general tax law principles and current IRS guidance on digital assets and virtual currency. Tax counsel and advisers must recognize applicable tax rules for DeFi lending, staking, liquidity mining, and other transactions, as well as define proper reporting and tax treatment for these transactions.

Listen as our panel discusses critical tax considerations for DeFi transactions, key tax issues for U.S. taxpayers, entities, and tax-exempts, IRS enforcement actions, and proper reporting.

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Outline

  1. Overview of DeFi
  2. Applicable tax rules
  3. Characterization of DeFi transactions
  4. Reporting and compliance
  5. State and local tax considerations

Benefits

The panel will review these and other key issues:

  • How are U.S. tax rules applied to DeFi platforms and transactions?
  • What characterization issues arise for DeFi under current tax law?
  • What are the reporting requirements and compliance pitfalls for DeFi transactions?
  • What are the state and local tax challenges of DeFi transactions?

Faculty

Freeman, Jason
Jason B. Freeman, J.D., CPA

Founder and Managing Member
Freeman Law

Mr. Freeman is a dual-credentialed attorney-CPA, author, law professor, and trial attorney. He represents clients in...  |  Read More

Rappaport, Matthew
Matthew E. Rappaport, Esq., LL.M.

Vice Managing Partner
Falcon Rappaport & Berkman

Mr. Rappaport counsels clients on technical and complex tax issues. He works closely with closely held business owners,...  |  Read More

Attend on November 3

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You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. CPE credit is not available on recordings. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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