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Digital tokens have been used to raise substantial amounts of money. But little attention has been paid to the tax consequences surrounding their issuance and sale. There are significant potential tax liabilities lurking in the use of digital tokens. But, because of the anonymity inherent in the blockchain structures used for the issuance of tokens and payments for them, there is a significant question as to whether those tax liabilities will ever be collected.


Taxation, securities, corporate finance, digital tokens, bitcoins, block chain, e-commerce, bearer instruments, virtual currencies, taxation, DAO token, tax treatment of tokens, tokens as equity, issuer obligations

Publication Title

Tax Notes

Publication Citation

156 Tax Notes 1387 (September 11, 2017).