U.S. Sens. Ron Wyden (D-OR) and Mike Crapo (R-ID) have launched an initiative to address uncertainties surrounding the tax treatment of digital assets.
Wyden, chair of the Senate Finance Committee, and Crapo, the ranking member on the committee, issued an open letter seeking input from experts, stakeholders and interested parties on the matter.
“The rapid emergence of digital assets has raised novel regulatory issues, including the appropriate treatment under our federal tax law. The [tax code] draws distinctions between types of property, with no straightforward classification for digital assets. This uncertainty creates complex reporting issues for taxpayers, and warrants examining how the [code] can provide clearer guidance for taxpayers on the treatment of digital asset transactions,” Wyden and Crapo wrote in the letter.
They are seeking feedback from interest parties to better understand how Congress can address the tax challenges and opportunities presented by digital assets.
They posed a series of questions on a variety of topics related to the tax treatment of digital assets. The complete list of questions can be found on the Senate Finance Committee website.
The senators requested that the responses to the questions be returned to them by Sept. 8. Responses can be emailed to responses@finance.senate.gov. The committee will collect answers to these questions on a rolling basis until the Sept. 8 deadline.