The U.S. Internal Revenue Service has been working on its first tax guidance for cryptocurrency since 2014, which will purportedly be released soon, as stated by the agency’s commissioner on Monday.
IRS Commissioner Charles P. Rettig outlined a non-specific plan to release in-depth guidance in the near future when Rep. Tom Emmer’s requested for further guidance on reporting cryptocurrencies. Rettig wrote in the letter:
“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.
As per the letter, 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.” Rettig added that the Guidance on these and other issues will be released “soon.”
Rep. Emmer said in a statement after receiving Rettig’s reply:
“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.”
Notably, Rep. Emmer is part of the Congressional Blockchain Caucus, a group of lawmakers that aims at solidifying the reporting requirements and legal requirements associated with cryptocurrencies. His original request called for the IRS to “issue more robust guidance clarifying taxpayers’ obligations when using virtual currencies” with a deadline of May 15, 2019.
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