The US Internal Revenue Service Plans To Update Cryptocurrency Tax Guidance
RegulationBit News Today1 min read
The U.S. Internal Revenue Service is working on new cryptocurrency tax guidance, according to a claim made on Monday by IRS Commissioner Charles P. Rettig. It is the IRS' first such update on cryptocurrency tax since 2014, and the agency is planning in-depth guidance on virtual currency transactions.
The IRS' latest initiative follows a request letter from Rep. Tom Emmer, a member of the Congressional Blockchain Caucus. In a letter to Rettig, Emmer asked the agency to clarify three key areas of uncertainty in current cryptocurrency tax policy: acceptable methods for calculating cost basis, acceptable methods of assigning cost basis, and the tax treatment of cryptocurrency forks.
A nonspecific plan is being developed to release the guidance soon, Rettig stressed, confirming that he shares Emmer's belief that clearer virtual currency taxation rules are needed. The agency is focusing on the specific issues the congressman raised, as well as other issues.
Emmer praised the IRS' plans, saying he looked forward to the forthcoming proposal. The Congressional Blockchain Caucus, of which he is part, aims among other goals to solidify cryptocurrencies' legal requirements and reporting requirements.
The exact shape of the guidance, and its implementation timeline, remain to be seen.
