A newly released memo written in late June indicates the IRS considers crypto earned from micro tasking on crowdsourcing or similar platforms.
The question on the memo was "Is convertible virtual currency received by an individual for performing a microtask through a crowdsourcing or similar platform taxable income?"
And according to Ronald Goldstein who works at the income tax and accounting division it is. He says Yes "a taxpayer who receives convertible virtual currency in exchange for performing a microtask through a crowdsourcing platform has received consideration in exchange for performing a service, and the convertible virtual currency received is taxable as ordinary income."
"Other examples include an offer of convertible virtual currency in exchange for downloading a particular app from an app store and leaving a positive review including a comment, downloading games and reaching certain milestones, completing online quizzes and surveys, or registering accounts with various online services. These types of microtasks may provide individuals with “rewards” in the form of convertible virtual currency. The value of convertible virtual currency paid in exchange for a single microtask often is a small amount that may be less than $1,"
What do you think about this? Is it mostly good or mostly bad? I would guess posting things and commenting and receiving money would be considered a micro task according to the government. It does validate crypto to some degree, but I myself think it's mostly bad. Do the votes I give out then become charitable donation that I can write off? How is this all going to work?
More articles about the newly released memo can be found at
https://news.yahoo.com/amphtml/cryptocurrency-earned-carrying-microtasks-taxable-073128005.html
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