SECTION 4. SCOPE

.01 In General . (1) The safe harbor described in section 5.01 of this revenue procedure is available only to a taxpayer who holds remaining digital asset units and has units of unused basis as of January 1, 2025.

(2) The taxpayer may not apply the safe harbor described in this revenue procedure to any digital assets acquired by or transferred to the taxpayer on or after January 1, 2025. Section 1.1012-1(j) of the 2024 final regulations generally applies to digital assets acquired by or transferred to a taxpayer on or after January 1, 2025.

(3) The safe harbor described in this revenue procedure does not apply to any allocation of units of unused basis the amount or the availability of which is under consideration before any court of the United States; before the IRS Independent Office of Appeals; or subject to an examination by the IRS, about which the IRS first contacts the taxpayer prior to January 1, 2025; unless, in each case, a final determination has been made with respect to the amount or the availability of such basis before the date the specific unit allocation or global allocation must be completed pursuant to section 5.02(4) or 5.02(5)(b) of this revenue procedure, respectively.

(4) The taxpayer may apply the safe harbor described in this revenue procedure to one or more types of digital assets held by the taxpayer prior to January 1, 2025, separately with respect to each such type of digital asset. For example, Bitcoin is one type of digital asset, and Ether is another type of digital asset.

(5) The safe harbor described in section 5.01 of this revenue procedure is available only to a taxpayer who satisfies the requirements of section 4.02 of this revenue procedure. The failure to meet all the

requirements with respect to one type of digital asset, however, does not impact the taxpayer’s ability to apply the safe harbor with respect to any other type of digital asset for which the taxpayer is able to satisfy the requirements.

.02 Requirements. (1) Each remaining digital asset unit must be a capital asset in the hands of the taxpayer. See section 1221.

(2) Each unit of unused basis must have been originally attached to a digital asset unit that was a capital asset in the hands of a taxpayer.

(3) The digital asset unit from which the unused basis is derived and the remaining digital asset unit must be the same type of digital asset.

(4) The taxpayer must be able to identify and maintain records sufficient to show the total number of remaining digital asset units in each of the wallets or accounts held by the taxpayer.

(5) The taxpayer must be able to identify and maintain records sufficient to show the number of units of unused basis, the original cost basis of each such unit of unused basis, and the acquisition date of the digital asset unit to which the unused basis was originally attached.

(6) A taxpayer must treat any allocation under this revenue procedure as irrevocable for all purposes of section 1012.