ASA has issued a response to the IRS regarding its treatment of certain nonfungible tokens as collectibles.
Noted in the response was ASA’s recognition of the challenge facing IRS as it develops guidance about NFTs using the existing regulatory framework while also developing its own understanding of the assets themselves.
However, the proposed “look-through analysis” contained in the Notice raises valuation-related questions that, while not immediately germane here, are important to consider as this process will inform subsequent thinking on NFTs going forward.
Read the complete response here.