By Garrett L. Brodeur and Mahima Chaudhary
Tax Notes Federal
November 28, 2022
Abstract: In this article, Brodeur and Chaudhary examine Odyssey, a new blockchain-based rewards program from Starbucks, and its potential tax pitfalls for unwary customers.
Digital assets are becoming mainstream, and commercial enterprises are racing to find new ways to encourage consumers to buy in. While commercial on-ramps into digital marketplaces promote crypto fluency and financial flexibility, some recent alternatives may pose tax compliance concerns. One example is Starbucks Odyssey, a soon-to-launch blockchain-based customer rewards program. Odyssey participants are invited to complete games, challenges, and learning exercises (journeys) to acquire digital journey stamps, which are non-fungible tokens (NFTs) that unlock exclusive rewards.
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Published with permission from Tax Notes Federal © 2022.