Camuso CPA Submits Recommendation to Treasury and IRS Requesting Prediction Market Tax Guidance

Last Updated on August 23, 2026 by Patrick Camuso, CPA

Camuso CPA PLLC has submitted a formal recommendation to the U.S. Department of the Treasury and Internal Revenue Service requesting coordinated federal tax guidance for prediction-market event contracts under Notice 2026-23 and the 2026–2027 Priority Guidance Plan.

The submission asks Treasury and the IRS to address recurring federal tax-administration questions involving contract classification and character, transaction timing and losses, wagering treatment, Section 1256, taxpayer capacity and market-making activity, entity-level consequences, information reporting, digital-asset settlement, recordkeeping, and transition rules.

Prediction-market products can differ materially in legal structure, payout mechanics, referenced events, trading architecture, participant functions, and transaction endpoints. Camuso CPA’s recommendation therefore does not advocate a single federal tax treatment for all prediction markets or express a position regarding any particular contract, platform, taxpayer, client, or reporting position.

Notice 2026-23 expressly invites taxpayers and practitioners to recommend guidance projects and recognizes the value of practical experience from those applying the tax laws.

Camuso CPA submitted the recommendation to encourage greater consistency, administrability, and clarity as prediction-market activity and product variety continue to expand.

Read the full submission.

For inquiries regarding tax analysis involving prediction-market traders, market makers, investment firms, or event-contract activity, contact Camuso CPA.

About the Author

Patrick Camuso, CPA

Founder and Managing Director, Camuso CPA  ·  Host, The Financial Frontier

Forbes Best-In-State Top CPA 2025 Forbes Best-In-State Top CPA 2026 AICPA Digital Asset Tax Task Force Tax Notes Federal & Global Author Forbes Business Council First U.S. CPA Firm to Accept Crypto Crypto-Native Since 2016

Patrick Camuso is the founder and Managing Director of Camuso CPA, one of the first practices in the country dedicated exclusively to cryptocurrency tax, accounting, and advisory for crypto investors, Web3 founders, and prediction market traders. He serves on the AICPA Digital Asset Tax Task Force and has published in Tax Notes Federal and Tax Notes Global on digital asset taxation and prediction market tax classification, alongside a former head of the IRS Office of Digital Assets. He is the author of The Crypto Tax Handbook and the first published book on Web3 sales tax compliance, has taught CPE courses with leading providers on Form 1099-DA and other digital asset tax topics, hosts The Financial Frontier podcast, publishes The Digital Asset Digest newsletter, speaks at ETHDenver and other major conferences, and is a member of the Forbes Business Council.

Media Coverage: Bloomberg Tax  ·  Business Insider  ·  Accounting Today  ·  MarketWatch  ·  Morningstar  ·  Wired  ·  Yahoo Finance  ·  Forbes

Analysis published here has been cited in Tax Notes and referenced across major tax and financial publications.