The US Internal Revenue Service Plans To Update Cryptocurrency Tax Guidance

The U.S. Internal Revenue Service is working on the new tax guidance for cryptocurrency as claimed by the agency’s commissioner on Monday. This is the first initiative since 2014.

IRS Commissioner Charles P. RETTIG stressed that a nonspecific plan is being developed to release in-depth guidance for cryptocurrency taxation in the nearest future:

“I share your belief that taxpayers deserve clarity on basic issues related to the taxation of virtual currency transactions and have made it a priority of the IRS to issue guidance.”

The IRS is working on guidance for “acceptable methods for calculating cost basis, acceptable methods of cost basis assignment, and the tax treatment of forks” according to the request letter sent by Rep. Tom EMMER. The commissioner states that guidance on these and other issues will be published soon. After receiving the reply, Rep. Emmer commented:

“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.”

Rep. Tom EMMER is part of the Congressional Blockchain Caucus, a group of lawmakers that aims, among other goals, to solidify the reporting requirements and legal requirements associated with cryptocurrencies.

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