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Squaring the Circle: Are Smart Contracts and DAOs Tax Entities? 1 Credit

Squaring the Circle: Are Smart Contracts and DAOs Tax Entities? 1 Credit

  • Rating

    4.4
  • Published on

    May, 2024
  • Subject Area

    Taxes

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Dec 05, 12:00 PM ET

Learning Objective

  • Review when software arrangements, such as smart contracts or DAOs, may be classified as tax entities or "looked through" under existing tax laws.
  • Analyze the potential tax implications of different entity classifications, including partnerships, domestic and foreign corporations, and their effects on U.S. and non-U.S. taxpayers.
  • Recognize and discuss arguments that oppose the classification of software arrangements as tax entities or subject to "look-through" treatment
  • Develop strategies for tax planning to minimize risks and ensure compliance while managing entity or "look-through" classification.
  • Examine practical use cases involving DAOs, liquidity pools, and other Web3 protocols to identify the various tax considerations that arise in real-world scenarios.

Course Overview

The rise of blockchain technology has introduced innovative concepts such as smart contracts and Decentralized Autonomous Organizations (DAOs). However, as they become more prevalent, a significant question arises: Are smart contracts and DAOs considered tax entities?

This course provides tax and accounting professionals specializing in Web3, DeFi, cryptocurrency, and blockchain technologies with an in-depth exploration of how smart contracts and decentralized autonomous organizations (DAOs) are viewed from a tax perspective. Participants will learn when software arrangements may be considered tax entities or subject to "look-through" treatment. The Course will cover the potential tax consequences of these treatments and delve into arguments contradicting them.

Additionally, the course will explain relevant tax guidelines and best practices for minimizing risks. Topics such as partnership, domestic and foreign corporation treatment, and alternatives to entity classification will be addressed. Participants will also learn about real-world use cases involving DAOs and protocols, understand key concepts like liquidity pools, and explore potential strategies to avoid undesired tax implications. The presenter will discuss thought experiments and practical examples to illustrate the implications and applications of the discussed concepts. 

Major topics covered-

  • Software as Tax Entities
  • DAOs and Protocol Tokens
  • Entity Classification Guidelines
  • Tax Consequences and Risks
  • Minimizing Entity Treatment Risks

Join this CE Course, it is designed to provide participants with the necessary knowledge to understand the evolving tax environment around Web3 entities and offer strategies for compliance.

Looking to fulfill your Enrolled Agent (EA) Continuing Education (CE) requirements? MY-CPE online Enrolled Agent CE courses are the best for you. Earn EA CE credits while enhancing your domain knowledge and expertise in diverse tax regulations and practices. Our courses are designed to provide you with the latest updates and deep insights to keep you ahead in your field. With flexible scheduling and a user-friendly platform, MY-CPE offers you a greater convenient and interactive learning experience. Join MY-CPE today and take the next step in advancing your career as an Enrolled Agent. 

  • 1 CPE Credit of Taxes for Certified Public Accountants (CPA-US)
  • 1 General Credit of Taxes for Accountant/Bookkeeper/Tax Professionals
  • 1 CE Credit of Federal tax-related matters for Enrolled Agents (EA) (Approval No. GEHNZ-T-02020-24-S)
  • 1 CE Credit of Federal tax-related matters for Annual Filing Season Program (AFSP) (Approval No. GEHNZ-T-02020-24-S)
  • 1 CE Credit of Tax Planning for Certified Financial Planner (CFP-US) (Approval No. 326792)

    Valid upto : Dec 31, 2024

  • 1 CE Credit of Federal tax-related matters for California Registered Tax Preparers (CRTP) (Approval No. 6273-CE-1607)
  • 1 CPD Credit of Taxes for Personal Financial Specialist (PFS)
  • 1 CE Credit of Taxes for Chartered Financial Consultant (ChFC)
  • 1 CE Credit of Federal tax-related matters for Maryland Tax Preparer (MRTP) (Approval No. GEHNZ-T-02020-24-S)
  • 1 CE Credit of Federal tax-related matters for Oregon Registered Tax Preparers (ORTP) (Approval No. GEHNZ-T-02020-24-S)
  • 1 CE Credit of Taxes for Retirement Income Certified Professional (RICP)
  • 1 CE Credit of Federal tax-related matters for LTC (Approval No. GEHNZ-T-02020-24-S)
  • 1 CE Credit of Taxes for Financial Services Certified Professional (FSCP)
  • 1 CE Credit of Taxes for Wealth Management Certified Professional (WMCP)
  • 1 CE Credit of Taxes for Chartered Advisor in Senior Living (CASL)
  • 1 CPE Credit of Taxes for Iowa Licensed Public Accountant (IA-LPA)
  • 1 CE Credit of Taxes for Chartered Special Needs Consultant (ChSNC)
  • 1 CPE Credit of Taxes for Maine Licensed Public Accountant (ME-LPA)
  • 1 CPE Credit of Taxes for Delaware Licensed Public Accountant (DE-LPA)

  • 1.5 CPE Credit of Taxes for Certified Public Accountants (CPA-US)
  • 1.5 General Credit of Taxes for Accountant/Bookkeeper/Tax Professionals
  • 1 CE Credit of Federal tax-related matters for Enrolled Agents (EA) (Approval No. GEHNZ-T-02020-24-O)
  • 1 CE Credit of Federal tax-related matters for Annual Filing Season Program (AFSP) (Approval No. GEHNZ-T-02020-24-O)
  • 1 CE Credit of Federal tax-related matters for California Registered Tax Preparers (CRTP) (Approval No. 6273-CE-1607)
  • 1.5 CPD Credit of Taxes for Personal Financial Specialist (PFS)
  • 1.5 CE Credit of Taxes for Chartered Financial Consultant (ChFC)
  • 1 CE Credit of Federal tax-related matters for Maryland Tax Preparer (MRTP) (Approval No. GEHNZ-T-02020-24-O)
  • 1 CE Credit of Federal tax-related matters for Oregon Registered Tax Preparers (ORTP) (Approval No. GEHNZ-T-02020-24-O)
  • 1.5 CE Credit of Taxes for Retirement Income Certified Professional (RICP)
  • 1 CE Credit of Federal tax-related matters for LTC (Approval No. GEHNZ-T-02020-24-O)
  • 1.5 CE Credit of Taxes for Financial Services Certified Professional (FSCP)
  • 1.5 CE Credit of Taxes for Wealth Management Certified Professional (WMCP)
  • 1.5 CE Credit of Taxes for Chartered Advisor in Senior Living (CASL)
  • 1.5 CPE Credit of Taxes for Iowa Licensed Public Accountant (IA-LPA)
  • 1.5 CE Credit of Taxes for Chartered Special Needs Consultant (ChSNC)
  • 1.5 CPE Credit of Taxes for Maine Licensed Public Accountant (ME-LPA)
  • 1.5 CPE Credit of Taxes for Delaware Licensed Public Accountant (DE-LPA)

Additional Information

Credits

1

Course Level

Basic

Instructional Method

QAS Self Study
Group Internet Based

Pre-requisites

None

Advance Preparation

None

IRS APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor Id#: GEHNZ) has entered into an agreement with the Internal Revenue Service, to meet the requirements of 31 Code of Federal Regulations, section 10.6(g), covering aintenance of attendance records, retention of program outlines, qualifications of instructors, and length of class hours. This agreement does not constitute an endorsement by the IRS as to the quality of the program or its contribution to the professional competence of the enrolled individual. Credit earned by attendees with a PTIN will be reported directly to the IRS as required of all providers. To ensure your CPE hours are reported, update your profile in My Account to include your PTIN number. Please note: IRS CE is only mandatory for EAs and ERPAs. For all other tax return preparers, CE is voluntary.

NASBA APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors.

About Instructor

CryptoCFOs
CryptoCFOs

, CryptoCFOs

  • 4.6
  • rating
  • rating
  • rating
  • rating
  • rating

CryptoCFOs is the premier community dedicated to professionals in the Web3 finance sector, including accountants, tax professionals, CFOs, CPAs, bookkeepers, auditors, attorneys, enrolled agents, business students, Web3 executives, and investors.

Our mission is clear: to demystify the complexities of crypto taxation and accounting. We offer expert guidance to simplify crypto tax and accounting, providing members with exclusive access to valuable resources, educational content, networking opportunities, and the latest insights into crypto, NFTs, Web3, and blockchain.

Through NASBA-approved CPE courses, on-demand video tutorials, live expert discussions, and a rich library of resources, we empower our community with the knowledge and tools needed to navigate the dynamic landscape of digital assets confidently.

We are proud to foster an environment that celebrates choice and collaboration. Embracing a diverse ecosystem of partners allows our community members to explore a variety of tools and resources, ensuring they find the best fit for their unique needs.

Our goal is to empower you with options, not limitations, enhancing your journey in the Web3 finance landscape. In this pivotal moment for Web3 finance, the opportunity for tax and accounting professionals is unparalleled.

With a rapidly expanding market, the increasing acceptance and adoption of cryptocurrencies, and the evolving regulatory landscape, the need for specialized knowledge in crypto tax preparation and accounting has never been greater.

At CryptoCFOs, we equip our members to capitalize on these trends, offering a platform that encourages learning, exploration, as well as the support and perspective of professionals on a global level.

Jason Schwartz
Jason Schwartz

Tax Partner, Fried, Frank, Harris, Shriver & Jacobson LLP

  • 0

Jason Schwartz (aka CryptoTaxGuy.eth on X) is a renowned tax partner and co-head of the Digital Assets and Blockchain Practice at Fried, Frank, Harris, Shriver & Jacobson LLP. He specializes in tax issues related to financial products, securitizations, funds, treaties, lending, and digital assets. With deep expertise in these fields, Jason provides invaluable guidance to clients navigating the complex and evolving tax landscape of digital assets.

Jason has consistently earned recognition for his contributions to the tax profession. Chambers USA has acknowledged him as an "Up and Coming" lawyer in Tax, while Legal 500 US has named him a "Next Generation Partner" in Tax: Financial Products annually from 2017 to 2022.

In addition to his practice, Jason is an accomplished author, having written numerous articles and a Bloomberg BNA Tax Management Portfolio on the taxation of collateralized loan obligations (CLOs). He is also a sought-after speaker at prominent events such as the New York State Bar Association (NYSBA) and the American Bar Association (ABA) conferences and Korea Blockchain Week, where he shares insights on tax and digital assets.

Jason is deeply committed to pro bono work and community service. He oversees Fried Frank's 501Foundry program, helping non-profit organizations incorporate and obtain tax-exempt status.

Before joining Fried Frank, Jason was a partner at a large international law firm. He holds an LLM from New York University School of Law, a JD magna cum laude from American University Washington College of Law, and a BA cum laude from New York University. He is admitted to practice law in New York and the District of Columbia.

On Demand FAQs

What is Self Study (QAS)?

Self Study QAS (Quality Assurance Service) is a NASBA and other regulatory bodies approved program designed for Professionals to complete their Continuing Professional Education credits through self-paced, interactive courses that meet the highest standards of quality and compliance. We are approved by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies.

How do I earn CPE credits through self-study?

To earn CPE credits, you must complete the self-study course, pass the required assessments, and submit the necessary documentation. Credits are awarded based on the completion of course hours and successfully passing the assessments.

Are the self-study courses approved by NASBA and other regulatory bodies?

Yes, all our self-study courses are approved by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies, ensuring they meet the rigorous standards for quality and educational content set by these organizations.

What are the requirements to maintain compliance with self-study courses?

To maintain compliance, you must follow the guidelines set by NASBA and other regulatory bodies, which include completing the course within the specified timeframe, passing the assessments, and keeping accurate records of your learning activities.

How can I access my course completion certificates?

After successfully completing a self-study course and passing the assessments, you can access and download your course completion certificates from your account dashboard on our platform. These certificates are recognized by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies for compliance and reporting purposes.

How are credits reported to governing bodies?

We issue instant credit certificates, ensuring they are valid for presentation to governing bodies. Typically, we report IRS, CTEC, CFP, IDFP, IWI, VBOA Ethics credits within 7 days – the fastest in the industry.

Live Webinar FAQs

What is a Live Webinar Group Internet-Based Credit?

A Live Webinar Group Internet-Based Credit is an interactive, real-time online seminar where professionals can earn Continuing Education credits by participating in live sessions led by experts in various fields. These sessions meet the standards set by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies.

How do I earn credits through live webinars?

To earn credits, you must attend the entire live webinar, actively participate in any polls or questions, and complete any required evaluations or assessments. Credits are awarded based on your attendance and participation in the live session.

Are the live webinars approved by NASBA and other regulatory bodies?

Yes, all our live webinars are approved by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies, ensuring they meet the high standards for quality, interactivity, and educational content set by these organizations.

What are the requirements to maintain compliance with live webinar courses?

To maintain compliance, you must adhere to the guidelines set by NASBA and other regulatory bodies, which include attending the full duration of the webinar, participating in interactive elements, and completing any post-webinar evaluations or assessments.

How can I access my webinar completion certificates?

After successfully attending a live webinar and fulfilling all participation requirements, you can access and download your completion certificates from your account dashboard on our platform. These certificates are recognized by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies for compliance and reporting purposes.

How are credits reported to governing bodies?

We issue instant credit certificates, ensuring they are valid for presentation to governing bodies. Typically, we report IRS, CTEC, CFP, IDFP, IWI, VBOA Ethics credits within 7 days – the fastest in the industry.

Ratings and Review

4.4

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JS

Jason Shaver, CPA (US)

I look forward to using cryptocfos.com

JE

John Eason, CPA (US)

The course met my expectations and was informative about a new topic.

Inclusions
  • Multiple Credits
    Multiple Credits

    Earn continuing education credits with flexibility. Choose from live webinars, on-demand courses, e-books, or podcasts to fit your learning style and schedule.

  • Certifications & Reporting
    Certifications & Reporting

    We issue instant credit certificates, ensuring they are valid for presentation to governing bodies. Typically, we report IRS, CTEC, CFP, IDFP, IWI, VBOA Ethics credits within 7 days - fastest in the industry.

  • Credit Tracker
    Credit Tracker

    Track and manage your compliance across all 50 states and over 100 designations. Our Credit Tracker keeps your CPE credits and compliance requirements always up-to-date.

  • Certificate Vault
    Certificate Vault

    Certificate Vault to upload, manage, and access certificates earned from various sources and an integrated credit tracker, allowing users to monitor and manage their credits conveniently for compliance.

  • Compliance Reminders
    Compliance Reminders

    Stay current with our automated reminder system. Receive timely alerts for your CPE requirements, ensuring you never miss a deadline.

  • Mobile App Access
    Mobile App Access

    The myCPE Mobile App allows you to learn on the go, providing access to educational content on Android and Apple iOS devices. You can learn anytime and anywhere, making it convenient for busy schedules.

  • Live Support
    Live Support

    Our support team is available via live chat, email, and phone from 9 AM to 5 PM ET. We're here to help with any questions or issues, ensuring you have a seamless experience.

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