IRS Proposes Taxing NFTs as Collectibles

The US Internal Revenue Service (IRS) is seeking feedback on whether to tax non-fungible tokens (NFTs) on a par with other collectibles such as stamps, works of art, and fine wine, in a move likely to have an impact on those including the digital assets within their retirement plan. The proposed guidance represents the first move by the US tax authority in a while to clarify the tax treatment of digital assets, addressing a vacuum that has left some taxpayers guessing about their liability. The IRS is looking for people to comment on the proposal by June 19, on issues such as when an NFT constitutes a work of art.