The US Internal Revenue Services (IRS) <a href="https://www.irs.gov/pub/irs-wd/202035011.pdf" target="_blank" rel="noopener">released</a> a memo on August 28, stating that cryptocurrencies obtained from microtasks would now be recognized as the taxable income. 

The memorandum, which has been released recently, actually, was drafted on June 28, on request of the Small Business/Self Employed Division of the US agency. 
<h2>IRS Clarifies Small Business/Self Employed Division</h2>
As per the report, the tax agent’s own division needed clarification on the convertible virtual currency, and in response to that, the IRS Office of Chief Counsel published the memo, which indicates that now it would be considered as a taxable income.

The Small Business/Self Employed Division of IRS asked its authority whether cryptocurrency earned from microtasks, which have been performed on different platforms, could be considered taxable or not. While responding to its own division’s questions, the IRS clearly stated ‘yes’.

Ronald Goldstein, the author of the memo, wrote that the taxpayers involved in microtasks on different platforms receive crypto as a consideration for their services. He further stated that according to the IRS, the rewarded cryptos are just like the income therefore, they would be taxable.

Additionally, in his memo, Goldstein stated that microtasks allows the traders to acquire a small amount of crypto.

The memo published by IRS explained, 
<blockquote>“Many also earn digital currencies by a comment, downloading games and reaching certain milestones, completing online quizzes and surveys, or registering accounts with various online services.”</blockquote>
<h2>IRS Working On To Draft Taxation Framework</h2>
The report states that the US does not have a proper framework for crypto taxation, therefore, the US citizens show digital assets as their income. 

It is to be noted that the memo released by the IRS is not its approach towards the taxation process plan, but it just indicates that the US agency is getting a bit serious about it.

The report adds that the taxation department in the US has started working with many industry players to draft a taxation framework for the cryptocurrencies.
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IRS Announces To Consider Crypto Earned From Microtasks As Taxable

The US IRS released a memo on August 28, stating that cryptocurrencies obtained from microtasks would now be recognized as the taxable income.

Jyoti is a graduate from GGSIPU and has done her PG Diploma in English Journalism from IIMC. Presently, she is working as a content writer with Agio Support Solution Pvt. Ltd. Her aim is to provide informative content about cryptocurrency and blockchain, to the tech-enthusiasts.

IRS Announces To Consider Crypto Earned From Microtasks As Taxable

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