IRS Still Dragging Heels on Crypto Rules

IRS Still Dragging Heels on Crypto Rules



The US Internal Revenue Service (IRS) moves to provide clear cryptocurrency taxation guideline to the increasing user base in the United States continues to develop at a snail’s pace with the agency responsible for collecting taxes promising Congress that it will issue new cryptocurrency tax guidance soon.

This, of course, is not the first of such promises over recent times; just last month the lack of response from the IRS in dealing with crypto taxation forced members of Congress on the blockchain committee chaired by Congressman Tom Emmer to provide clarity about filing crypto-related taxes before tax day.

The need for an update on crypto taxation is certainly needed, the last request by the blockchain committee in April stated that “the 2014 guidance by the IRS failed to address fundamental tax questions”, and further spawned more request for clarity. Five years does seem an excessive time to wait given the rise in cryptocurrency’s rise in popularity in the US, and the many questions taxpayers are now asking.

IRS Commissioner Charles Rettig response to Emmer’s request for an update to taxation rules for crypto owners shared many similarities to past responses on the subject from the IRS:

“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.”

Emmer pointed out the need for urgency in his response to what appears to be IRS complacency on getting to grips with cryptocurrency and pointing taxpayers in the right direction commenting:

“… it has been over a decade since the IRS National Taxpayer Advocate identified, in its 2008 Annual Report, that the ambiguous tax treatment of virtual property and currency transactions was one of ‘the most serious problems encountered by taxpayers.”

 

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