Taxes
NFT Investors Owe Billions in Taxes and IRS Sets Sights on Evaders
- Nonfungible token market exploded to $44 billion last year
- Uncle Sam is keen to collect, but the tax rules aren’t clear
A CryptoPunk avatar purchased by an NFT collector, in Whittier, California.
Photographer: Allison Zaucha/BloombergThis article is for subscribers only.
It’s one of the hottest corners of crypto -- and now the U.S. government wants its share of the profits.
Investors and creators of nonfungible tokens -- a market that has ballooned to $44 billion, Chainalysis data show, and attracted fans from Justin Bieber to Melania Trump -- face billions of dollars in taxes and rates as high as 37%, according to tax experts. Internal Revenue Service officials who deal with tax evaders say they are gearing up for a crackdown.