Guidance and enforcement put virtual currencies front and center

[...]of the hard fork, all bitcoin holders received the same amount of bitcoin cash on the new blockchain. If a particular asset has characteristics of virtual currency, it will be treated as virtual currency for federal income tax purposes regardless of the label (FAQNo. 1). Sale or exchange of virtual currency The 2019 FAQ reiterate that virtual currency is treated as property, and general tax principles for property transactions apply. [...]taxpayers recognize gain or loss when they sell or exchange virtual currency for other property or services (FAQNo. 2). If the taxpayer is an employee, the FMV of virtual currency paid as wages is subject to federal income tax withholding, Federal Insurance Contributions Act tax, and Federal Unemployment Tax Act tax and must be reported on Form W-2, Wage and Tax Statement.