In 2014, Notice 2014-21 provided guidance on the federal treatment of virtual currencies. In this notice, the Internal Revenue Service (IRS) stated, in general, virtual currencies are treated as property.
On Oct. 9, 2019, the IRS released Revenue Ruling 2019-246 and frequently asked questions (FAQs) which supplement the guidance in Notice 2014-21.
However, states often release their own guidance and rules.
The National Conference of State Legislators is tracking and created a list of 2022 states’ cryptocurrency legislation.