IRS: Cryptocurrency rewards received after account freeze are still taxable

ChainCatcher news, according to News.bitcoin, the Internal Revenue Service (IRS) of the United States issued a memorandum in October stating that, despite accounts being frozen, cryptocurrency rewards received must still be taxed in the year they are received, even if the holders are later unable to access their funds.

The guidance was sent to Michael R. Fiore of the IRS Small Business/Self-Employed Division, which examined a hypothetical taxpayer (referred to as "Taxpayer A") who held cryptocurrency in an account on a bankrupt platform and received rewards, such as staking bonuses, before the account was frozen.