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July 27, 2023

Comprehensive changes to crypto taxation may be on the horizon as indicated by a recent Joint Committee of Taxation report, as well as the recently proposed Lummis-Gillibrand Responsible Financial Innovation Act.

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The New York State Bar Association Tax Section recently submitted a report recommending that the government provide guidance on various tax considerations related to non-fungible tokens ("NFTs").

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In light of the discontinuation of USD LIBOR after June 2023, the IRS has published final regulations that provide a SOFR-based reference rate to be used by foreign banks when electing to use a published rate as described in regulations under Code Section 882.

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The Supreme Court is set to hear the case of Moore v. United States, which will decide the constitutionality of the one-time transition tax enacted under the Tax Cuts and Jobs Act (the "TCJA") on undistributed earnings that have accumulated overseas.  The decision could affect other well-settled areas of the tax law that seemingly impose income taxes without a realization requirement.

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