The US Internal Revenue Service (IRS) is in the latest cryptocurrency news for a new document which shows that it is working on its first tax guidance for cryptocurrency since 2014. The IRS crypto tax guidance came from an agency’s commissioner who told a lawmaker about the news on Monday.
In a reply to Representative Tom Emmer’s request for further guidance on reporting cryptocurrencies, the IRS Commissioner Charles P. Rettig outlined a plan for an in-depth IRS crypto tax guidance which will come in the near 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,” Rettig wrote in a statement which went viral in the altcoin news.
According to his statement, the organization is working on the concept of IRS crypto tax guidance for “acceptable methods for calculating cost basis, acceptable methods of cost basis assignment, and the tax treatment of forks” according to the letter.
The guidance and other issues will be published “soon” as Rettig wrote – a statement which was shared on many best cryptocurrency news sites.
“I am glad to hear of the IRS’ plans to issue guidance on this important issue,” the Representative Emmer said in a statement after receiving Rettig’s reply on the IRS crypto tax guidance plans. “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.”
His original request and letter-written statement, however, called for the IRS to “issue more robust guidance clarifying taxpayers’ obligations when using virtual currencies” with a deadline of May 15, 2019.
He also emphasised that the IRS crypto tax guidance needs to see virtual currency and “treat it as property so that existing tax principles are applied to it just like they are applicable to property transactions.” He accented digital currencies as a medium of exchange and a subject to which investments increase and “continue to develop.”
In the end, Rep. Emmer said that he hopes the information is helpful, inviting the readers to contact him if they have any additional questions or requests.
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