Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 65

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 65
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 it is possible the IRS and various U.S. states may disagree with our treatment of certain Bitcoin
offerings for U.S. tax purposes, which could adversely affect our customers and the vitality of our business. Similar uncertainties
exist in the foreign markets in which we operate with respect to direct and indirect taxes, and these uncertainties and potential adverse
interpretations of tax law could impact the amount of tax we and our non-U.S. customers are required to pay, and the vitality of
our platforms outside of the United States.

There can be no assurance that the IRS, the U.S. state
revenue agencies or other foreign tax authorities, will not alter their respective positions with respect to crypto assets in the future
or that a court would uphold the treatment set forth in existing positions. It also is unclear what additional tax authority positions,
regulations, or legislation may be issued in the future on the treatment of existing crypto asset transactions and future crypto asset
innovations under U.S. federal, U.S. state or foreign tax law. Any such developments could result in adverse tax consequences
for holders of crypto assets and could have an adverse effect on the value of crypto assets and the broader crypto assets markets. Future
technological and operational developments that may arise with respect to crypto assets may increase the uncertainty with respect to the
treatment of crypto assets for U.S. and foreign tax purposes. The uncertainty regarding tax treatment of crypto asset transactions
impacts our customers, and could impact our business, both domestically and abroad.

Our tax information reporting obligations with respect to Bitcoin
transactions are subject to change.

Although we believe we are compliant with U.S. tax
reporting and withholding requirements with respect to our customers’ Bitcoin transactions, the exact scope and application of such
requirements, including but not limited to U.S. onboarding requirements through Forms W-9 and W-8, backup withholding, non-resident
alien withholding, and Form 1099 and Form 1042-S reporting obligations, is not entirely clear for all of the crypto asset transactions
that we facilitate. In November 2021, the U.S. Congress passed the Infrastructure Investment and Jobs Act (the “IIJA”),
providing that brokers would be responsible for reporting to the IRS the transactions of their customers in digital assets, including
transfers to other exchanges or non-exchanges. In June 2024, the U.S. Treasury Department and the IRS released regulations