The United States Internal Revenue Service (the IRS) plans to release guidance on treating nonfungible tokens (NFTs) as collectibles under the US tax code. In its recent notice, the IRS called for public feedback on how NFTs could be taxed as collectibles and noted that under U.S. tax law, collectibles “do not have as advantageous capital-gains tax treatment as other capital assets”. Until additional guidance is issued, the IRS intends to determine when an NFT is treated as a collectible by using a “look-through analysis”, which means that an NFT is treated as a collectible when its associated right or asset falls under the definition of collectible in the tax code. The proposed IRS guidance may apply the same capital gains tax rate to NFTs as applies to collectibles such as coins or artwork – a maximum rate of 28%. Comments are expected to be submitted by 19 June 2023.