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How to Tax Crypto Hard ForksConfused about crypto taxation? Our guide simplifies IRS rules on Bitcoin and other cryptocurrencies, covering tax rates, capital gains, and income tax. Based on recent IRS guidance, a taxpayer who holds cryptocurrency does not realize income when the cryptocurrency goes through a software change (as described. 1. Hard forks are taxable events in the US. According to the IRS crypto guide, when receiving new coins from a hard fork and you full �dominion and control� of.