Nicholas C. Mowbray

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IRS Issues Guidance on Non-Fungible Tokens – What It Says and Does Not Say

Photo of Betsy SmithPhoto of Nicholas C. MowbrayPhoto of Robert A. MusialaPhoto of Teresa Goody GuillénBy Betsy Smith, Nicholas C. Mowbray, Robert A. Musiala and Teresa Goody Guillén on Posted in Alert
The Proposed Guidance and Implications The IRS and Treasury Department announced on March 21, 2023, that they intend to issue guidance providing that certain NFTs qualify as collectibles under Section 408(m) of the Code. The Notice is the first guidance issued by the IRS addressing the U.S. federal income tax treatment of NFTs. The IRS … Continue Reading

New Initiatives Launch in Staking, DeFi, DAOs; IRS Issues NFT Guidance; White House Report Criticizes Crypto; SEC and DOJ Crypto Enforcement Continues

Photo of Robert A. MusialaPhoto of Christopher LambPhoto of Nicholas C. MowbrayPhoto of Joanna F. WasickPhoto of Keith R. MurphyPhoto of Lauren BassBy Robert A. Musiala, Christopher Lamb, Nicholas C. Mowbray, Joanna F. Wasick, Keith R. Murphy and Lauren Bass on Posted in Blockchain
In this issue: • Staking Market Launches, ‘Defi Cover’ Data Published, DAO Buys Golf Course• IRS Issues Guidance on Non-Fungible Tokens• Economic Report of the President Criticizes Digital Assets• SEC Charges Crypto Entrepreneur and Celebrities; DOJ Targets Crypto Fraudster• U.S. Crypto Exchange Receives SEC Wells Notice, Publishes Staking Analysis• Moscow Money Mules and Hackers: Digital … Continue Reading

The Tax Man Isn’t Leaving: The IRS Continues to Issue John Doe Summonses Relating to Virtual Currency Transactions

Photo of Carlos OrtizPhoto of Betsy SmithPhoto of Nicholas C. MowbrayPhoto of Christina GotsisPhoto of Kayley SullivanBy Carlos Ortiz, Betsy Smith, Nicholas C. Mowbray, Christina Gotsis and Kayley Sullivan on Posted in Tax
On Sept. 23, 2022, a U.S. District Court judge approved an IRS John Doe summons served on a New York-based bank seeking account records, including account opening documents and records of deposits, withdrawals, transfers and wires, of clients who used sFOX for cryptocurrency services. The summons was issued in connection with partnered services the bank … Continue Reading

The Tax Man Is Back: IRS Issues First John Doe Summons in 2022 to Major Crypto Platform, Seeking Treasure Trove of Information on Tax Noncompliance

Photo of Carlos OrtizPhoto of Nicholas C. MowbrayPhoto of Christina GotsisPhoto of Kayley SullivanBy Carlos Ortiz, Nicholas C. Mowbray, Christina Gotsis and Kayley Sullivan on Posted in Cryptocurrency, Tax
After going for more than a year without using one of its most powerful weapons, a John Doe summons, the Internal Revenue Service (IRS) has reverted to the use of this tool in its much-publicized efforts to investigate, find, and prosecute those who fail to report virtual currency transactions and those who facilitate not reporting. … Continue Reading

Taxation of Non-Fungible Tokens

Photo of Nicholas C. MowbrayBy Nicholas C. Mowbray on Posted in NFT
Part Four in our series discusses U.S. federal income tax issues relating to Non-Fungible Tokens (NFTs) and provides an overview of how NFTs may be treated for U.S. federal income tax purposes. IRS Guidance 1. Notice 2014-21At the time of this publication, the U.S. government has only passed legislationaddressing tax reporting requirements for “brokers” of … Continue Reading

Proposed Federal Crypto Legislation Supported by Digital Asset Ecosystem; Consumer Advocacy Groups Balk

Photo of Teresa Goody GuillénPhoto of Kevin EdgarPhoto of Veronica ReynoldsPhoto of Nicholas C. MowbrayPhoto of Michelle TanneyPhoto of Alex KarambelasBy Teresa Goody Guillén, Kevin Edgar, Veronica Reynolds, Nicholas C. Mowbray, Michelle Tanney and Alex Karambelas on Posted in Cryptocurrency
On June 7, Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) introduced S. 4356, the Responsible Financial Innovation Act (Lummis-Gillibrand Bill). If enacted, the legislation would create a regulatory framework for federal oversight of digital assets. In a jointly authored blog post published in conjunction with the introduced bill, Senators Lummis and Gillibrand warned that … Continue Reading

Cryptocurrency Tax Enforcement May Soon Reward Tipsters Through Whistleblower Program and False Claims Act

Photo of Carlos OrtizPhoto of Nicholas C. MowbrayPhoto of Betsy SmithPhoto of Christina GotsisPhoto of Kayley SullivanBy Carlos Ortiz, Nicholas C. Mowbray, Betsy Smith, Christina Gotsis and Kayley Sullivan on Posted in Blockchain
International and state authorities could soon bolster enforcement efforts by rewarding individuals who provide information about underreporting income on virtual currency transactions. As a result, digital asset investors and their tax advisors could find themselves subject to liability under yet another regulation creeping into cryptocurrency governance. Taxpayers who skirt tax payments on virtual investments could … Continue Reading

Global Tax Enforcement Group Provides NFT Red Flag Guidance

Photo of Teresa Goody GuillénPhoto of Christina GotsisPhoto of Nicholas C. MowbrayPhoto of Betsy SmithPhoto of Carlos OrtizBy Teresa Goody Guillén, Christina Gotsis, Nicholas C. Mowbray, Betsy Smith and Carlos Ortiz on Posted in NFT
Answering the call for guidance regarding potential issues concerning the popular cryptocurrency assets NFTs, on April 28, the J5 issued a first-of-its-kind intelligence bulletin warning the public of the dangers of dealing with NFTs. Titled the “J5 NFT Marketplace Red Flag Indicators,” the bulletin provides real-world guidance to banks, law enforcement partners and private investigators … Continue Reading

Financial Firms Develop Crypto Offerings; DAO Hacker Reportedly Identified; DOJ Names New Crypto Director; NFT Initiatives Launch as Markets Are Hacked

Photo of Robert A. MusialaPhoto of Nicholas C. MowbrayPhoto of Lauren BassPhoto of Teresa Goody GuillénPhoto of Alex KarambelasBy Robert A. Musiala, Nicholas C. Mowbray, Lauren Bass, Teresa Goody Guillén and Alex Karambelas on Posted in Blockchain
In This Issue Financial Services Firms Make Moves Targeting Cryptocurrency Markets POC Seeks to Defend Quantum Attacks; DAO Hacker Reportedly Identified Music Company Partners with NFT Platform, Record Label Converts to NFT Label DOJ Names New Crypto Enforcement Director; Scammers Target NFT Market… Continue Reading

New Crypto Products Launch; Market Reports Published; Treasury Dept. Addresses Crypto Tax; Crypto Enforcement Actions and Threats Continue

Photo of Robert A. MusialaPhoto of Joanna F. WasickPhoto of Nicholas C. MowbrayPhoto of Alex KarambelasPhoto of Lauren BassPhoto of Keith R. MurphyBy Robert A. Musiala, Joanna F. Wasick, Nicholas C. Mowbray, Alex Karambelas, Lauren Bass and Keith R. Murphy on Posted in Bitcoin, Blockchain, Cryptocurrency, Cybersecurity, Enforcement, FinTech, NFT, NFTs, Stablecoin
In This Issue: •Reports Address Crypto M&A and Metaverse, New Crypto Products Launch •Treasury Dept. Letter Addresses Crypto Tax; Reports Address Crypto Risks •US, UK and Canadian Law Enforcement Take Aim at Cryptographic Assets •Counterfeits, Wash Trading and Bots: Crypto Market Threats Continue •Chainalysis Previews 2022 Cryptocurrency Crime Report Findings… Continue Reading

CBDC Research Published, Crypto Products Launch, Report Addresses NFT Money Laundering Risks, UK Addresses DeFi Tax, DOJ Brings $4.5B Crypto Case

Photo of Robert A. MusialaPhoto of Nicholas C. MowbrayPhoto of Alex KarambelasBy Robert A. Musiala, Nicholas C. Mowbray and Alex Karambelas on Posted in Blockchain
In This Issue: •CBDC Research Published, Fintech Firms and Banks Launch Crypto Initiatives •US Department of Treasury Guidance Notes NFT Money Laundering Risks •A Major US Banking Agency Prioritizes Crypto; Market Integrity in Focus; UK Updates DeFi Tax Guidance •DOJ Charges Couple for Laundering $4.5B in Crypto, UN Reports Crypto Threats… Continue Reading

Crypto, CBDC and Blockchain Supply Chain Initiatives Announced; More SEC and FinCEN Enforcement; Crypto Tax Amendment Fails; DeFi Hacked for $600M

Photo of Robert A. MusialaPhoto of Veronica ReynoldsPhoto of Joanna F. WasickPhoto of Teresa Goody GuillénPhoto of Nicholas C. MowbrayPhoto of Kayley SullivanBy Robert A. Musiala, Veronica Reynolds, Joanna F. Wasick, Teresa Goody Guillén, Nicholas C. Mowbray and Kayley Sullivan on Posted in Bitcoin, Blockchain, Cryptocurrency, Enforcement, Platforms, Securities & Exchange Commission, Tax
In this issue: • Crypto Firms Pursue Bank Charters, Traditional Financial Firms Integrate Crypto • CBDC and Blockchain Remittance Initiatives Launch Across Foreign Markets • Blockchain Supply Chain Initiatives Launch Across Various Industries • SEC Charges DeFi Company and Digital Asset Exchange Platform • FinCEN Settles Enforcement Action Against Major Cryptocurrency Exchange • Senate Passes … Continue Reading

Cryptocurrency Payment Products and NFT Initiatives Launch, SEC Chairman Addresses Crypto, Pending Legislation Includes New Crypto Tax Reporting Rules

Photo of Robert A. MusialaPhoto of Joanna F. WasickPhoto of Lauren BassPhoto of Veronica ReynoldsPhoto of Nicholas C. MowbrayBy Robert A. Musiala, Joanna F. Wasick, Lauren Bass, Veronica Reynolds and Nicholas C. Mowbray on Posted in Bitcoin, Blockchain, Cryptocurrency, Enforcement, NFTs
In this issue: • New Crypto Products Launch in Payment Cards, Gold and Sandwiches • More NFTs Launch in Sports, Fashion, Gaming and Charity Auctions • SEC Chairman, Kentucky and UK Address Various Aspects of Crypto Industry • Proposed Legislation Expands Crypto Tax Reporting, Senators Seek Amendment New Crypto Products Launch in Payment Cards, Gold … Continue Reading

DOJ and IRS May Soon Begin Enforcement Actions Against Virtual Currency Tax Fraudsters

Photo of John J. CarneyPhoto of Andrew SerraoPhoto of Robert A. MusialaPhoto of Jeffrey H. ParavanoPhoto of Nicholas C. MowbrayBy John J. Carney, Andrew Serrao, Robert A. Musiala, Jeffrey H. Paravano and Nicholas C. Mowbray on Posted in Tax
In the past several years, the use and prevalence of virtual currency have increased exponentially. The proliferation of digital assets has changed the way goods and services are exchanged and has allowed for faster and cheaper transactions. But with this new technology comes the increased risk of fraudulent activity – especially tax fraud. Recently, the … Continue Reading

Blockchain Developments: Crypto Custody and Payments, Supply Chain Pilots, Regulation and Enforcement

Photo of Joanna F. WasickPhoto of Nicholas C. MowbrayBy Diana Stern, Brian P. Bartish, Jonathan D. Blattmachr, Joanna F. Wasick and Nicholas C. Mowbray on Posted in Blockchain, Cryptocurrency, Food Supply Chain
In this issue: • Cryptocurrency Custody, Payments and Mining Initiatives Announced • Blockchain Provenance and Authentication Solutions Emerging in Food and Manufacturing Markets • Recent Global Regulatory Developments in Digital Assets • U.S. and International Enforcement Agencies Take Action Against Crypto Crimes • Crypto Tax Update: Foreign Accounts, Like-Kind Exchanges, Software Uptick Cryptocurrency Custody, Payments … Continue Reading

Alert: IRS Issues New Guidance and FAQs on Virtual Currencies

Photo of Nicholas C. MowbrayPhoto of Robert A. MusialaPhoto of Betsy SmithPhoto of Brian DavisBy Nicholas C. Mowbray, Robert A. Musiala, Betsy Smith, Laura E. Jehl and Brian Davis on Posted in Cryptocurrency
On Oct. 9, the Internal Revenue Service (IRS) issued additional guidance regarding the taxation of cryptocurrency. The guidance comes more than five years after the IRS issued Notice 2014-21, the first and, until now, only official guidance regarding cryptocurrency. Revenue Ruling 2019-24 (the Revenue Ruling) reaffirms that virtual currency is treated as property and does … Continue Reading

Crypto Exchange and Payment Solutions Expand, New UK Guidance Issued, US Enforcement Actions Continue

Photo of Nicholas C. MowbrayPhoto of Robert A. MusialaPhoto of Joanna F. WasickBy Nicholas C. Mowbray, Robert A. Musiala and Joanna F. Wasick on Posted in Cryptocurrency
In this issue: • Cryptocurrency Exchange and Payment Solutions Continue to Expand • New UK Guidance Published, Licenses Received by Cryptocurrency Firms Across Globe • Cryptocurrency Enforcement Actions Continue From IRS and DOJ Cryptocurrency Exchange and Payment Solutions Continue to Expand By: Nicholas C. Mowbray This week, Blockchain.com, a London-based supplier of digital wallets, announced … Continue Reading

Exchanges Going Live, Supply Chain Initiatives Advance, Threats Continue as Arrests Target ‘Shadow Banking’

Photo of Joanna F. WasickPhoto of Robert A. MusialaPhoto of Jordan R. SilversmithPhoto of Nicholas C. MowbrayBy Joanna F. Wasick, Robert A. Musiala, Jordan R. Silversmith and Nicholas C. Mowbray on Posted in Bitcoin, Blockchain, Cybersecurity, Tax
In this issue: • Cryptocurrency Exchanges Move Closer to Live Trading, New Stablecoins Announced • New Blockchain Initiatives Targeting Enterprise Use Announced • DoJ Arrests Operators of ‘Shadow Banking Services,’ Regulators Warn of Scams • Cyberattacks Target Cryptocurrencies, Threat Actors Employ Crypto Techniques • Tax Analysis: New Crypto Tax Tools Available, New Disclosure Category Added … Continue Reading

Supply Chain Pilots Advance, Bitcoin Decentralization Improves, Hacks Continue, Foreign Regulations Evolve

Photo of Nicholas C. MowbrayPhoto of Robert A. MusialaBy Nicholas C. Mowbray, Diana Stern, Robert A. Musiala, Simone O. Otenaike and Brian P. Bartish on Posted in Blockchain, Cybersecurity
In this issue: • Blockchain Pilots for Supply Chain and Land Titles, Improved Analytics, and Decentralization • Blockchain Capital Markets Initiatives Continue Across the Globe • Canadian Exchange Claims Lost ‘Cold Storage’ Funds Amid Fraud Allegations • Scams, Hacks and Illicit Financing: Blockchain Threats Continue to Abound • SIM Swapping Hackers Convicted, Philippines Introduces New … Continue Reading

Blockchain for NASA and IoT, Developments in Crypto Products and Payments, Cryptocurrency Exchange Hacked

Photo of Robert A. MusialaPhoto of Joanna F. WasickPhoto of Jordan R. SilversmithPhoto of Nicholas C. MowbrayBy Diana Stern, Robert A. Musiala, Joanna F. Wasick, Jordan R. Silversmith, Simone O. Otenaike, Roger M. Brown and Nicholas C. Mowbray on Posted in Blockchain, Cryptocurrency, Enforcement
In this issue: • The Blockchain Effect: NASA, IoT, Supply Chain and State Initiatives • Blockchain Announcements From Traditional Financial Institutions and Emerging Platforms • Cryptocurrency Exchanges and Payment Providers Announce New Products • Cryptocurrency Exchange Hacked, Crypto-Malware and Wallet Vulnerabilities Exposed • International Regulators Target Cryptocurrency Exchanges, ICOs and Tax Compliance • Tax Analysis: … Continue Reading

New Blockchain Products, an FBI Raid, the $11 Billion Bitcoin Case, Hackers Strike With a 51 Percent Attack and Crypto Tax Analysis

Photo of Robert A. MusialaPhoto of Joanna F. WasickPhoto of Nicholas C. MowbrayBy Simone O. Otenaike, Robert A. Musiala, Joanna F. Wasick, Roger M. Brown, Heather K. P. Fincher and Nicholas C. Mowbray on Posted in Blockchain, Cryptocurrency, Enforcement, Tax
In this issue: • New Cryptocurrency Financial Products and Platforms Announced • An FBI Raid, the $11 Billion Bitcoin Case, and Other Enforcement and Regulatory Actions in the U.S. and Abroad • Hackers Strike With 51 Percent Attack and Crypto-Mining Malware • Tax Analysis: Token Taxonomy Act Would Allow Tax-Free Exchanges of Virtual Currencies • … Continue Reading

Studies Analyze Cryptocurrency Market, New Announcements in Payments, Enterprise and Threats

Photo of Robert A. MusialaPhoto of Shea M. LeitchPhoto of Nicholas C. MowbrayBy Robert A. Musiala, Shea M. Leitch, Simone O. Otenaike, Nicholas C. Mowbray, Heather K. P. Fincher and Roger M. Brown on Posted in Capital Markets Offerings, Cryptocurrency, Enterprise
In this issue: • Multiple Studies Analyze Recent Cryptocurrency Market Trends • Stablecoins, “Trading Pairs” and Other Developments in Cryptocurrency Payments • Threat Update: Ransomware, Crypto-mining Malware, BTMs and ICO Fraud Schemes • Blockchain Enterprise Developments in France, Spain and South Korea • UK Issues Cryptocurrency Guidance; US Issues Remain • Monetizing Positions in Cryptoassets … Continue Reading
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