Members of the Congressional Blockchain Caucus are seeking guidance from the Internal Revenue Service (IRS) on tax reporting of virtual currency.
The IRS issued guidance in 2014 that says digital assets should be treated like property. However, there have been a number of reporting questions since then an no guidance has been issued on them.
The caucus members sent a letter to the IRS saying taxpayers deserve clarity on several basic unanswered questions regarding federal taxation of virtual currencies. Repeated requests to the IRS have been made by but the issues have never been clarified. Instead, the IRS has increased enforcement activities against taxpayers who “misreport” their cryptocurrency transactions, according to a recent report from Coin Center.
“Guidance is long overdue and essential to proper reporting of these emerging assets. The bipartisan support this letter has received should send a clear message to the IRS that clear guidelines for reporting virtual currency are necessary,” Rep. Tom Emmer (R-MN), a co-chair of the caucus, said. “My colleagues and I are optimistic that the IRS will issue the guidance needed for taxpayers struggling with these reporting requirements.”