Lawmakers seek answers from IRS on tax reporting of virtual currency – Financial Regulation News

Members of the Congressional Blockchain Caucus are seeking
guidance from the Internal Revenue Service (IRS) on tax reporting of virtual
currency.   

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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.” 

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