Should Airdrops Be Taxed?

Should Airdrops Be Taxed?

By Sir Loin | The Crypto Shenanigans | 25 May 2021


US Congressman Tom Emmer is pushing for a Safe Harbor Act to protect taxpayer recipients of cryptocurrency hard fork coins.The bill was introduced to prohibit the IRS from penalizing taxpayers for making a profit or loss for hardfork gift coins until the IRS issues sufficient guidance on how to do so.

The meaning of the bill is very simple. Here is an example of a situation that can happen to anyone.

The famous fake Satoshi Craig Wright hardforked BCH in 2018 and released his own Bitcoin SV (BSV) shitcoin. He claimed it to be the real bitcoin, as Satoshi Nakamoto himself saw it in his white paper in 2008.

All Bitcoin Cash owners forcibly received shitty coins on their wallets. Many of them did not even know about it. Some hodlers have not looked into their wallets for years, and have not received notifications. Satoshi Nakamoto himself received a million BCH to his wallet, although he did not ask anyone about it.

According to the American law if the owner himself did not report the profit received, he faces a fine or even criminal prosecution.

The good thing is that Tom Emmer's Law is supposed to bring order to regulation so that law-abiding citizens are not held accountable for “violations” they did not commit.

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By the way, the same fate awaits the owners of Ether wallets. Look into some of your old wallets and you will find that there a couple of dozen, or even hundreds of different ERC-20 tokens that were airdropped to you without your knowledge. Most of these tokens are worth nothing. Or they cost very little, but some could have grown significantly since the first aridrops of 2016-2018. And it may turn out that you accidentally generated income in your wallet that you do not know anything about, but your tax office knows.

A very correct and timely bill.

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