An important and influential court to rewrite income tax laws from the field of cryptography in the United States.
A critical Supreme Court case and its ruling could redefine the taxation of digital assets. Intersecting with the vexed IRS broker rule announced earlier, this case may potentially reshape crypto tax reporting and compliance on a fundamental level.
The IRS Broker Rule and This Supreme Court Case Could Change How Crypto Taxation Is Defined The outcome of a significant Supreme Court case may change how digital assets are taxed.This case may fundamentally alter crypto tax reporting and compliance, as it intersects with the contentious IRS broker regulation that was previously published.The Moore v. U.S. case centers on a disagreement about how some investments are treated tax-wise.The plaintiffs, Charles and Kathleen Moore are contesting a tax
imposed on their investment in a business established in India. They contend that at the time the statute was passed, they had not reaped any financial rewards from this investment.
Do they or do they repatriate those profits to the United States to make them taxable under the 16th Amendment?
The Sixteenth Amendment, ratified in 1913, gave Congress the power to levy an income tax without apportioning it among the states based on population.
The argument focuses on the definition of “income” and “realized income”, questioning whether unrealized gains should be subject to tax. While this case primarily concerns overseas
investments, its outcome could spark a broader debate about the taxation of various investment types, potentially influencing the tax code’s treatment of emerging asset classes, including digital assets like cryptocurrencies.
