U.S IRS Will ‘Soon’ Release Guidance on Crypto Taxes

Wilfred Michael 

Wilfred Michael

News reporter

21 May 2019,
07:34
U.S IRS Will ‘Soon’ Release Guidance on Crypto Taxes

The United States Internal Revenue Service (IRS) is working on tax guidance for cryptocurrency traders and investors according to one of the agency’s Commissioner Charles P. Rettig.

Commissioner Rettig revealed the development in his response to an earlier request by a delegation of 21 U.S Congressmen led by Rep. Tom Emmer. The Congressmen had asked the tax authority to provide further guidance on how cryptocurrency holders will report their taxes, especially “calculate and track the basis” of their assets.

In a response letter, Commissioner Rettig acknowledged that the concerns expressed by the Congressmen are right because “taxpayers deserve clarity on basic issues related to the taxation of virtual currency transactions.”

Rettig then confirmed that the IRS has made it a priority to release guidance that will let crypto taxpayers know “acceptable methods for calculating cost basis, acceptable methods of cost basis assignment, and the tax treatment of forks.” He, however, fell short of mentioning a possible schedule for the release of the proposed crypto tax guidance, only writing in the letter that the Commission will soon” publish the legislative piece.

Meanwhile, Rep. Tom Emmer received the IRS Commissioner’s update in good faith writing in a follow-up statement,

"I am glad to hear of the IRS' plans to issue guidance on this important issue. Taxpayers deserve clarity on several basic questions regarding federal taxation of these emerging exchanges of value. I look forward to seeing their forthcoming proposal, and working together to serve the American taxpayers."

As Stmarket.co has reported in the past, Rep. Tom Emmer is among the team of U.S Congressmen leading the fight the provide clear regulations for the country’s cryptocurrency and blockchain ecosystem.

Emmer is among the sponsors of the newly reintroduced Digital Taxonomy Act, a bill designed to provide regulatory certainty to the emerging industry.

 

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