- A business that is paid in crypto includes its fair market value in US dollars on the day it is received in gross income.
- Corporations pay a flat federal income tax of 21%. Sole proprietors and partners pay income tax plus 15.3% self-employment tax on their net earnings.
- Under US accounting standards (ASU 2023-08), companies measure most crypto at fair value from fiscal years beginning after 15 December 2024. For tax, gains are still realized only when the crypto is disposed of.
- The US has no VAT. A business that exchanges or transmits crypto for customers must register with FinCEN as a money services business and usually needs state licenses.
This page covers businesses in the United States that hold, accept or earn crypto, at the federal level. State income and franchise taxes come on top and are not covered. Private individuals are covered on personal tax, and the filing dates on filing and deadlines. It is general information, not tax advice.
Crypto in the accounts
For tax. Notice 2014-21 says that a taxpayer who receives virtual currency as payment for goods or services must include its fair market value in US dollars, as of the date received, in gross income. Crypto held as inventory or primarily for sale to customers produces ordinary gain or loss when sold; crypto held as an investment produces capital gain or loss. If mining is a trade or business, the net earnings are self-employment income.
In the financial statements. The Financial Accounting Standards Board’s ASU 2023-08 requires an entity to measure assets that meet its crypto asset criteria at fair value, with changes recognized in net income each reporting period. It is effective for all entities for fiscal years beginning after 15 December 2024. This changes the books, not the tax rules: for income tax, a gain is still only taxed when the crypto is sold or exchanged.
Paying staff and contractors in crypto
- Employees. Under Notice 2014-21, crypto paid as wages is reported on Form W-2. Its fair market value is subject to income tax withholding and to social security, Medicare and federal unemployment taxes.
- Contractors. Payments in crypto to independent contractors are subject to the same information reporting as payments in dollars, valued at fair market value on the payment date. For payments made after 31 December 2025 the base reporting threshold under section 6041(a) is $2,000 (Revenue Procedure 2025-32); it was $600 before.
- Large crypto payments. Businesses must report cash payments over $10,000 on Form 8300. The law now includes digital assets, but the IRS said in Announcement 2024-4 that, until regulations are published, businesses do not have to include digital assets when deciding whether the $10,000 threshold is met. We found no such regulations at the time of writing (October 2026).
Corporate income tax and self-employment tax
| Business form | Federal tax (2026) |
|---|---|
| C corporation | 21% of taxable income (26 U.S.C. § 11) |
| Sole proprietor (Schedule C) | Income tax at 10% to 37% on profit, plus self-employment tax of 15.3% (12.4% social security, 2.9% Medicare) on net earnings of $400 or more |
| Partnership, S corporation | Generally no entity-level income tax; profit flows through to the owners’ returns |
Very large corporations can also owe the corporate alternative minimum tax, which starts from financial statement income. Because fair value accounting puts unrealized crypto gains in that income, the IRS said in Notice 2025-49 that such corporations may adjust their adjusted financial statement income to disregard unrealized gains and losses on digital assets that are measured at fair value. Corporations answer the digital asset question on Form 1120, and partnerships and S corporations on Forms 1065 and 1120-S.
VAT and sales tax
The United States has no federal VAT or sales tax; sales taxes are set by the states and local governments, and their treatment of crypto differs by state and is not covered here.
If your business provides crypto services
A business that exchanges crypto for dollars or transmits it for customers is generally a money transmitter under FinCEN’s rules. It must register with FinCEN as a money services business within 180 days after it is established, run an anti-money-laundering program and keep records (see regulation). Most states also require a money transmitter license, and New York requires a BitLicense.
Custodial platforms that effect sales for customers are brokers for tax purposes. They report gross proceeds on Form 1099-DA for sales from 1 January 2025, and basis for assets acquired from 1 January 2026; what they report is on filing and deadlines.
Sources
- IRS: Notice 2014-21 (Internal Revenue Bulletin 2014-16) (last checked October 2026)
- IRS: Digital assets (last checked October 2026)
- 26 U.S.C. § 11, tax imposed (US Code, Office of the Law Revision Counsel) (last checked October 2026)
- IRS: Self-employment tax (social security and Medicare taxes) (last checked October 2026)
- IRS: Revenue Procedure 2025-32 (2026 inflation adjustments) (last checked October 2026)
- IRS: Announcement 2024-4, transitional guidance under section 6050I for digital assets (last checked October 2026)
- IRS: Notice 2025-49, interim guidance on the corporate alternative minimum tax (last checked October 2026)
- FASB: Accounting Standards Update 2023-08, Crypto Assets (Subtopic 350-60) (last checked October 2026)
- eCFR: 31 CFR 1022.380, registration of money services businesses (last checked October 2026)
- FinCEN: FIN-2013-G001, application of FinCEN’s regulations to virtual currencies (last checked October 2026)
This page is general information, not tax advice. Rules and rates change, so check the official sources above before you act.