IRS Warns Crypto ETFs Over Tax-Avoidance Structures
- —IRS flagged funds holding digital assets while keeping gains off the books
- —Tax-free Section 351 stock conversions were revoked
- —New guidance may apply retroactively to past transactions
- —Public comment period runs until October 28
Why it matters: The guidance could reshape crypto ETF structures and raise tax burdens on funds, potentially affecting capital inflows into the sector.
Source: BeInCrypto JP