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The IRS Hints a plan to Issue Tax Guidance for Cryptocurrency.

The U.S. Internal Revenue Service released a document that indicates tax guidance on cryptos is in the works. Since 2014, this is the first tax guidance for cryptocurrency according to the IRS commissioner’s response to a lawmaker on Monday. A U.S. Rep Tom Emmer had engaged in written communication with the IRS commissioner as regards a prior request for further guidance on reporting cryptocurrencies. The IRS Commissioner Charles P. Rettig, replies with non-explicit information but just enough to hint plan to release in-depth guidance in the near future.

Rep. Emmer is part of a group of lawmakers that aims dubbed ‘the Congressional Blockchain Caucus’ that objectifies solidification of the reporting requirements and legal requirements associated with cryptocurrencies, among other goals. The IRS is the government agency is a bureau of the Department of the Treasury and is under the immediate direction of the Commissioner of Internal Revenue. Their aim includes Filing taxes, collecting taxes, ensuring compliance with regulation amongst other things that fall within their jurisdiction.

Emmer’s initial request to the IRS was on a deadline of May 15, 2019, in which he made a call for the IRS to “issue more robust guidance clarifying taxpayers’ obligations when using virtual currencies”. the response was dated 16th May to the U.S. Rep.

 

According to the open letter in response, Rettig wrote:

“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 acceptable methods for calculating cost basis, acceptable methods of cost basis assignment, and the tax treatment of forks”

In direct response to the much-anticipated cryptocurrency tax Guidance other issues that may be related the commissioner indicated it will be published “soon,”

Rep. Emmer said in a statement after receiving the reply from the IRS commissioner: “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.”

 

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Credits- John Biggs

Anita O.

Lover of tech and blockchain.

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