The memo provides an update on the tax treatment of the Founders Reward for Zcash Founders. The company will not recognize income upon the successful mining of the Founders Reward for U.S. federal income tax purposes, unless disposed of in a taxable transaction. The distribution of Founders Reward in the form of ZEC will be treated as a property distribution. The company has disposed of some of the Founders Reward in taxable sales to fund operations and generate USD for distribution to partners, resulting in taxable income. A special allocation of such income will be made to partners who received USD distributions. The company projects little to no taxable income for 2017, except for specially allocated income.
documents/EFTA00615490.pdf
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