Taxing Transactions In Virtual Currency?

Farrell Fritz, P.C.

Several years back, a client who had just sold their business inquired about investing some of their proceeds from the sale in a “cryptocurrency mining” venture based in Upstate N.Y. I thought they had lost their mind. “A what?” I asked. The client replied that the project involved the use of many powerful computers, but was otherwise unable to describe the business, let alone explain it to me in simple-to-understand terms.[i] Still, they pressed me, “What would you do?”

I hate that question. After reminding them that I could not provide any investment advice, I suggested they do more homework, and seek out a qualified investment adviser. Finally, I answered their question, saying that I would consider a more conventional place to park my hard-earned money.

Fast forward. Not only is cryptocurrency still with us – I think “virtual currency” may be more accurate[ii] – its acceptance seems to have grown among both closely-held and public companies; in fact, Facebook announced only last month that it was launching its own form of cryptocurrency.

These developments have caused some concern at the IRS, which believes that the increasing use of virtual currencies may jeopardize tax revenues.

Before describing the IRS’s position, including its recently announced plans, with respect to cryptocurrency, it may be helpful to review – albeit in an overly simplistic and somewhat fictional[iii] way – the evolution of currency, generally.[iv]Think of what follows as the development of my understanding of the concept.

Legal Tender

Thousands of years ago, our ancestors bartered – exchanged things of value – with one another in order to acquire the goods and services they needed. One would swap, or trade, a haunch of deer in exchange for two loaves of bread. A second would clear a field in exchange for an axe. A third would chop wood in exchange for a set of new clothes. A fourth would, to the delight of many, demonstrate their ability to successfully throw a ball through a hoop once out of every 4 attempts, for twenty minutes at a time, in exchange for a lifetime’s worth of food, clothing, shelter, protection, adulation, influence, and so much more – no wait, specialization was a later development (I’m getting ahead of myself).[v]

Specialization and Barter

The growth of societies was accompanied by two developments: (1) individuals began to realize that they could not dabble successfully in all skills;[vi] rather, they began to specialize in the production of certain goods and services – things they were good at – which they would trade with “specialists” in other goods and services; and (2) some people (the “government”) offered to protect the individuals who lived within an area (the “governed”) from the marauders that roamed the countryside, to patrol the roads that allowed them to travel to other places where they could trade their goods and services with people who lived elsewhere, and to settle disputes among the governed; in exchange for these services – another barter transaction – the governed were required to pay “taxes” and “tolls” in the form of goods and services.[vii] As the roles and responsibilities of the government grew and expanded, so did the need for more taxes by which the governed periodically paid for the additional services provided to them by the government.[viii]

Eventually, both the government and the governed realized that the transfer of value in-kind was unwieldy and inefficient. After all, what would a farmer do if the only thing of value that they owned was some seed, and they wanted to trade it with the blacksmith for some nails, but the blacksmith had no need for seed?[ix]Would you have to find someone who could use the seed who also had something of value that the blacksmith may want?[x]


In response to this quandary, the government eventually came up with the idea of “currency”: something that people can exchange for goods and services – also known as a “medium of exchange” – that is issued by the government and that is accepted at its face amount within the territory controlled by the government.

Originally, currency was issued in the form of coins made out of a precious metal (like gold), so that the coin itself was inherently valuable.[xi]

Later, currency was made out of paper that, in itself, was worthless but which was easier to handle. This paper, or banknote, was, and continues to be, a bearer note – meaning that its “value” is not “payable” to a specified person, but rather to whomever holds it – that is issued only by the government’s central bank.[xii] The paper’s status as a bearer note – “cash,” in the colloquial – affords the persons who transact business using such notes a degree of anonymity.[xiii]

It used to be, however, that the paper was backed by gold – meaning that the banknote could be presented to the government’s central bank and exchanged for gold[xiv] – but that is no longer the case.

Today, as in the case of any debt issued by the U.S. government, a banknote – your ordinary dollar bill and its siblings, all of which represent “legal tender” that a vendor of property or services is legally obligated to accept in satisfaction of the debt created in connection with such sale – is backed “only” by the “full faith and credit” of the U.S.,[xv] and that seems to be enough for most of the world.

Virtual Currency – As Understood by a Layperson [xvi]

Like “real” currency,[xvii] virtual currency acts as a medium of exchange for purchasing goods and services; as such, it can circulate from person to person, much as real currency does. Also like real currency, it can exist in different units of value.[xviii]

Unlike real currency, it is not issued by a national government or its central bank; it is not legal tender that must be accepted by someone selling goods or services within a particular jurisdiction. What’s more, it does not exist in any tangible form (like paper money), but only electronically.

Its proponents claim that, because virtual currency is not controlled by a central bank, it is free from interference by any such institution. They also claim that it may be transferred between parties to a transaction[xix] without incurring the high fees often charged by traditional financial institutions. In addition, the software that is used to effectuate these transfers functions without the need for the “identifying information” of the parties, thus providing a degree of anonymity.

I can’t comment on whether these advantages do, in fact, exist.

I will observe, however, from a theoretical perspective, that both the real and virtual systems depend upon the maintenance of a data base for each user, one that records the user’s transactions in which the real or virtual currency is acquired or transferred. In the case of real currency, a central bank handles this function; in the case of virtual currency, the function is performed by many private persons through a process called “mining,” which seeks to maintain the integrity of the “system” by validating transactions between parties.[xx]

The IRS’s Position

Although the term “cryptocurrency” seems to have entered the public lexicon around 2008,[xxi] the IRS did not issue any guidance until 2014.[xxii]

At that time, the IRS limited its guidance to virtual currency that has an equivalent value in real currency, or that acts as a substitute for real currency (so-called “convertible” virtual currency).[xxiii]

According to the IRS, virtual currency is treated as “property” for federal tax purposes; consequently, general tax principles applicable to property transactions apply to transactions using virtual currency.


For example, a taxpayer who receives virtual currency as payment for goods or services must, in computing their gross income, include the fair market value of the virtual currency, measured in U.S. dollars, as of the date that the virtual currency was received. This amount also represents the initial basis of such virtual currency in the hands of the taxpayer.[xxiv]

The fair market value of virtual currency received for services performed as an independent contractor, measured in U.S. dollars as of the date of receipt, constitutes self-employment income and is subject to self-employment tax.


If the fair market value of property received in exchange for virtual currency exceeds the taxpayer’s adjusted basis of the virtual currency,[xxv] the taxpayer has taxable gain.[xxvi] This should be compared to legal tender – like the dollar – which is always worth its face value, and the basis of which is also equal to its face amount.[xxvii]

The character of the gain generally depends on whether the virtual currency is a capital asset in the hands of the taxpayer. A taxpayer generally realizes capital gain on the sale or exchange of virtual currency that is a capital asset in the hands of the taxpayer. A taxpayer generally realizes ordinary gain on the sale or exchange of virtual currency that is not a capital asset in the hands of the taxpayer.

Information Reporting

A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property. For example, a person who in the course of a trade or business makes a payment of fixed and determinable income[xxviii] using virtual currency with a value of $600 or more to a U.S. non-exempt recipient in a taxable year is required to report the payment to the IRS and to the payee.

Similarly, a person who in the course of a trade or business makes a payment in virtual currency of $600 or more in a taxable year to an independent contractor for the performance of services is required to report that payment to the IRS and to the payee on Form 1099-MISC, Miscellaneous Income.

More Recent Developments

The foregoing guidance was all well and good.

However, in 2016, the AICPA[xxix] asked that the IRS provide additional guidance on the tax treatment of cryptocurrency. It repeated the request in 2018. The IRS has thus far failed to issue more guidance.

That being said, in early 2018, the IRS reminded taxpayers that income from virtual currency transactions was reportable on their income tax returns, and that virtual currency transactions were taxable just like transactions in any other property.[xxx] Taxpayers who did not properly report the income tax consequences of virtual currency transactions, it stated, could be audited for those transactions and, when appropriate, could be liable for penalties and interest. In more extreme situations, the IRS continued, taxpayers could be subject to criminal prosecution for failing to properly report the income tax consequences of virtual currency transactions.[xxxi]

As if to impress upon the public the magnitude of the challenge, the IRS noted that, as of the date of the release of this reminder to taxpayers, there were more than 1,500 known virtual currencies.[xxxii] The IRS stated that, because transactions in virtual currencies could be difficult to trace,[xxxiii] and have “an inherently pseudo-anonymous aspect,” some taxpayers may be tempted to hide taxable income from the government.

Compliance Campaign

Then, in July of 2018, the IRS announced a Virtual Currency Compliance Campaign to address tax noncompliance related to the use of virtual currency through outreach and through examinations of taxpayers.[xxxiv]

According to the announcement, the Compliance Campaign is aimed at addressing noncompliance related to the use of virtual currency. It stated that the compliance activities will follow the general tax principles applicable to all transactions in property, as outlined in the IRS’s 2014 guidance. It also urged taxpayers with unreported virtual currency transactions to correct their returns as soon as practical.

Significantly, the IRS indicated that it was not contemplating a voluntary disclosure program specifically to address tax non-compliance involving virtual currency.[xxxv]

Evidently not pleased with the pace of the IRS’s efforts to issue additional guidance, a group of lawmakers requested, in April of 2019, that the IRS update its 2014 guidance on the taxation of cryptocurrency transactions.

July 26, 2019

Last week, however, the IRS announced that it has begun sending letters to taxpayers with virtual currency transactions that potentially failed to report income and pay the resulting tax from such transactions, or that did not report their transactions properly.[xxxvi]

By the end of August, the IRS stated, more than 10,000 taxpayers will receive these letters. It indicated that the names of these taxpayers were obtained through “various ongoing IRS compliance efforts.”[xxxvii]

The IRS further stated that it will remain actively engaged in addressing non-compliance related to virtual currency transactions through a variety of efforts, ranging from taxpayer education to audits to criminal investigations. As if to emphasize this last point, the IRS stated that virtual currency is an ongoing focus area for IRS Criminal Investigation.

The announcement ended with a statement that the IRS anticipates issuing additional legal guidance in this area “in the near future,” and with a reminder that taxpayers who do not properly report the income tax consequences of virtual currency transactions will be liable for tax, penalties and interest, and criminal prosecution when appropriate.[xxxviii]

What’s Next?

With the announcement that it is going to start auditing taxpayers with cryptocurrency assets, the IRS is ramping up its focus on cryptocurrency transactions.

As in the case of unreported foreign accounts years ago, I would expect the IRS to engage in some high profile exams and prosecutions of both larger and smaller transactions so as to demonstrate that it is serious about across-the-board compliance in this area, and to thereby discourage noncompliance.

The fact that it is not considering, as a first step, a voluntary disclosure program, of the kind once made available to holders of unreported foreign accounts, may be an indication of the IRS’s perception of the potential magnitude of the threat to tax revenues that is presented by cryptocurrency transactions.

It is also likely that these exams will generate a great deal of data from which the IRS will derive the principles for additional guidance on the tax treatment of cryptocurrency transactions. The exams may even highlight any shortcomings in the IRS’s technical capability, as well as in its legal ability, to investigate such transactions, which in turn could form the basis for legislation to remedy any such shortcomings.

In the meantime, the IRS will rely on its not insignificant administrative, interpretive and enforcement powers to monitor cryptocurrency transactions.

Of course, there are bad actors who believe their transactions cannot be traced – like those folks who still transact business only in cash, or like those who used to hide their wealth in overseas accounts that were once protected by “privacy” laws, these taxpayers believe they are somehow acting “anonymously.”

What these folks forget is that the taxpayer bears the burden of establishing their proper tax liability. The taxpayer is charged with keeping records that support the amount of income received and expenses incurred, as well as their basis for property sold or exchanged. When they are found out, well, they may find that they are up a certain creek.

Speaking of which, it’s only a matter of time before they are found out. The same technology that they believe affords them the ability to go about their business undetected will one day enable the IRS to piece together the extent of their activities.

In light of the foregoing, any closely held business that determines, for bona fide business reasons, that it has to transact, or would benefit from transacting, with vendors or customers (“peers”) using a virtual currency must not lose sight of its tax reporting, record maintenance, and payment obligations.

[i] Call it a version of the “smell test.” If you can’t understand it well enough to explain it to someone else, stay away from it.

[ii] “Crypto” has a negative connotation in my mind. It is derived from the Greek word for “secret” or “hidden.” Query whether that selection was intended to convey something nefarious.

[iii] And hopefully humorous.

[iv] Lots of disclaimers, here. I am not a professional economic historian, though I am a student of government and of the “social contract” theory from which are derived the government’s responsibilities to the governed and the responsibilities of the governed to each other.

[v] Is it a sign of a mature or successful society that entertainers – be they athletes, singers, or actors – are treated as demigods? What about former public “servants” who become wealthy writing and talking about their years “in service”? I know, it’s what “the market” values.

[vi] I couldn’t be both a farmer and a fisherman, a teacher and a carpenter.

[vii] “In-kind.”

[viii] Think of these “exchanges” as forms of credit, debt and repayment.

[ix] We’re not going to discuss commercial credit here. In fact, commercial credit did not come into its own until after the introduction of currency.

[x] Think about the deferred like kind exchange. Rarely do you see two parties swapping properties between them. Rather, the seller who is seeking to acquire replacement property has to search elsewhere for the desirable property. Thus, at least four parties are required to effect the transaction: the seller of the relinquished property, the buyer of such property, the qualified intermediary who accepts payment for the relinquished property, and the seller of the replacement property, from whom the qualified intermediary acquires such property on behalf of the original seller. Phew!

[xi] “Valuable” in that someone was willing to give up something they had in exchange for the coin.

[xii] The Federal Reserve Bank, in the U.S.

[xiii] I.e., the ability to avoid their lawful tax obligations. After all, it is relatively difficult to trace and relatively easy to hide.

[xiv] Before 1971, paper money included the following statement: “This note is legal tender for all debts, public and private, and is redeemable in lawful money at the United States Treasury or at any Federal Reserve Bank.”

“Lawful money?” Gold.

[xv] Take a look at the paper money in your pocket or wallet, assuming you still carry any. It includes the following statement: “This Note Is Legal Tender for All Debts, Public and Private.” It is no longer redeemable for money.

In 1971, President Nixon eliminated the convertibility of the dollar into gold. One of the reasons for doing so was to prevent foreign governments from exchanging the dollars held by their central banks for the U.S.’s gold reserves.

[xvi] Me.

[xvii] For example, U.S. dollars.

[xviii] As I understand, these “units” or “tokens” are created by a complex computer code.

For a good discussion of cryptocurrencies, generally, I found the one on ASIC’s website especially helpful: .

[xix] The transfer is described as being “peer to peer.”

[xx] For example, by ensuring that the same unit of currency is not used twice in short order by the same person.

I can’t speak for others, but give me a central bank over private miners any time. Again, if I can’t understand it, . . .

[xxi] Though it appeared in the “computer world” well before that.

[xxii] Notice 2014-21.

[xxiii] Bitcoin is one example of a convertible virtual currency. Bitcoin can be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or virtual currencies.

The IRS stated that no inference should be drawn with respect to virtual currencies not described in the notice.

[xxiv] Query how such fair market value is to be determined. By reference to the value of the service rendered or of the property sold?

[xxv] To-date, the IRS has not treated virtual currency in the same way as foreign currency for purposes of IRC Sec. 988, which addresses foreign currency transactions.

[xxvi] Viewed differently, has the virtual currency appreciated in value? I’ve wrapped my head around this by thinking of the virtual currency as a metal or other commodity. Supply and demand at work?

[xxvii] Though its value relative to other items may be different at different periods of time; for example, because of inflation. I remember when a regular slice of pizza was 25 cents. Today, that regular slice is $3.00.

[xxviii] For example, as rent, premiums or compensation.

[xxix] American Institute of Certified Public Accountants.

[xxx] Virtual currency, the IRS explained, is generally defined as “a digital representation of value” that functions in the same manner as a country’s traditional currency. Hmm. A glimpse of things to come?

[xxxi] IR-2018-71.

[xxxii] The figure is probably closer to 2,000 now.

[xxxiii] Presumably because of the “peer to peer” feature. Like barter?


[xxxv] Compare the IRS’s approach (the OVDP) toward undisclosed foreign bank and other financial accounts.

[xxxvi] IR-2019-132.

[xxxvii] The IRS’s own data mining.

[xxxviii] Talk about beating a dead horse.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Farrell Fritz, P.C. | Attorney Advertising

Written by:

Farrell Fritz, P.C.

Farrell Fritz, P.C. on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

  • Email
  • First Name
  • Last Name
  • Company Name
  • Company Industry
  • Title
  • Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

  • Operate our Website and Services and publish content;
  • Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
  • Measure readership and usage of the Website and Services;
  • Communicate with you regarding your questions and requests;
  • Authenticate users and to provide for the safety and security of our Website and Services;
  • Conduct research and similar activities to improve our Website and Services; and
  • Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at:

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit
  • New Relic - For more information on New Relic cookies, please visit
  • Google Analytics - For more information on Google Analytics cookies, visit To opt-out of being tracked by Google Analytics across all websites visit This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at:

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.