U.S Reps Wants Guidance on Crypto Taxes As Deadline Looms

Wilfred Michael 

Wilfred Michael

News reporter

12 April 2019,
15:16
U.S Reps Wants Guidance on Crypto Taxes As Deadline Looms

A delegation of 21 U.S lawmakers led by Rep. Tom Emmer has asked the country’s Internal Revenue Service (IRS) to provide further guidance about how cryptocurrency holders should report their taxes.

In a letter reportedly delivered to the tax authority ahead of taxpayers day on April 15, Rep Emmer and Co. noted that the IRS is yet to provide clear answers to some reporting questions posed by the emergence of cryptocurrencies.

The lawmakers noted that it is now five years since the IRS issued a not-so-clear guideline in which it stated that cryptocurrencies should be treated as properties and taxed accordingly. Following the incomplete guidance, the IRS has not responded to inquiries by different entities regarding how people should file crypto taxes, the lawmakers stated.

Instead of providing the needed guidelines, the Reps argue that IRS focused on “increasing enforcement activities against taxpayers who “misreport” their cryptocurrency transactions.”

Specifically, the lawmakers mentioned that the issue with reporting cryptocurrency taxes lies in how holders should “calculate and track the basis” of their assets. Such concerns are relevant given that these assets are usually held on multiple exchanges and are highly volatile, unlike other properties.

With taxpayers day now less than a week away, Rep. Emmer expressed confidence that the IRS would look into the matter, further adding that “clear guidelines for reporting virtual currency are necessary."

Other notable lawmakers that signed that letter include Reps. Warren Davidson, Darren Soto, Ted Budd and Josh Gottheimer who have shown support for cryptocurrencies in the past.

The four Reps. also, back the Digital Taxonomy Act 2019, a bill which aims to exempt ICO tokens from U.S securities law. Earlier this week, Stmarket.co reported that the bill was reintroduced to the Congress after its debut in December 2018 and featured a host of new changes.

 

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