The Internal Revenue Service (IRS) issued a memorandum in October to address the tax obligations for digital asset rewards in accounts frozen due to bankruptcy. This guide has been sent to MichaelR. of the IRS Small Business/Sole Proprietorship Department Fiore studied a hypothetical taxpayer (referred to as "Taxpayer A") who held cryptocurrency in an account on a bankruptcy platform and received rewards such as staking bonuses before the account was frozen. According to the regulations of the US Internal Revenue Service, taxpayer A received a reward in the first year before the account was frozen, and must include the fair market value of the date and time of receipt of the reward in the total income of the first year... even if the account was still frozen on December 31 of the first year.   @gid