U.S. IRS to soon issue crypto tax guidance

The United States Internal Revenue Service is currently drafting its first crypto tax guidance since 2014, Commissioner Charles P. Rettig said recently, CoinDesk reported.

In response to a request from Rep. Tom Emmer for additional guidance on reporting cryptocurrencies, Rettig said that the agency has been working with internal and external stakeholders to identify the areas where needed and helpful additional guidance can be provided.

Emmer’s original request had set a deadline of May 15, 2019 for the IRS to “issue more robust guidance clarifying taxpayers’ obligations when using virtual currencies.”

“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,” Rettig said.

While Rettig did not specify a definite deadline for issuing the guidance, he said that the IRS was focusing on areas including acceptable methods for calculating cost basis, acceptable methods of cost basis assignment, and the tax treatment of forks, adding that the agency intends to “publish guidance addressing these and other issues soon.”

In response to Rettig’s letter, Rep. Emmer wrote:

“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.”

Back in 2017, two lawmakers and US state representatives Jared Polis and David Schweikert announced that launch of Congressional Blockchain Caucus. Rep. Emmer is part of the Caucus, which aims to advance sound public policy towards blockchain-based technologies and cryptocurrencies.