A smart contract is code deployed on a blockchain that executes automatically when its conditions are met; most DeFi, NFT, and token activity runs through them.
Interacting with a smart contract can be a taxable event (a swap, a liquidity deposit that returns a different token) or not (a transfer to a contract you control). The tax result depends on what you gave up and what you received, not on the fact that a contract was involved.
The IRS has no smart-contract-specific guidance, so each interaction is analyzed under property rules and the position should be documented. DeFi.
IRS crypto audits and letters, unreported years, theft loss opinions, and returns that survive an audit.
See the practice page →Our tax attorneys handle IRS audits, crypto tax, offshore disclosures, and opinion letters for clients nationwide. Consultations are confidential.
Definitions are general information, not legal advice, and may not reflect the most recent changes in law.
IRS letters, audits, unreported years, returns.
Foreign accounts, expats, offshore disclosure.
Audits, tax debt, criminal exposure, Tax Court.
Written analysis at a stated confidence level.
Asset protection for individuals and businesses; private company deals.
Attorney-reviewed returns and planning.
