New IRS Guidelines Offer Relief to Major Crypto Firms

Cryptocurrency businesses, particularly large players like Coinbase and Microstrategy, faced a significant tax burden due to the implementation of CAMT (Corporate Alternative Minimum Tax) in 2022. This regulation requires quarterly taxes at a rate of 15% based on adjusted financial statements (AFSI), impacting companies with substantial unrealized gains in their crypto holdings. The volatile nature of cryptocurrencies makes maintaining consistent tax obligations challenging as price fluctuations can trigger both gains and losses.