IRS Calls for More Tax Guidance On Crypto Transactions

One advisory committee to the US Internal Revenue Service (IRS) believes that the agency should provide clearer guidelines in the way in which cryptocurrency transactions are taxed. The new report is in our daily crypto news, showing that the Information Reporting Program Advisory Committee (IRPAC) highlighted cryptocurrencies like Bitcoin as rising in terms of popularity, stating that “there has also been an equal rise in question as to the applicable tax consequences.”

The IRS already issued one notice back in 2014, in which it stated that cryptocurrencies are treated as a form of property for tax purposes, to once again back that statement in March ahead o the April 15th tax filing deadline.

As the report states, “many industry and tax practitioners still question other tax consequences of cryptocurrency transactions.
buy light pack generic buy light pack online no prescription

”

It continues stating the following:

“Can cryptocurrency be considered a specified foreign financial asset? How is the basis determined for cryptocurrency that is sold? Does broker reporting apply to cryptocurrency transactions? Therefore, IRPAC recommends that the IRS issue further guidance on the tax consequences of cryptocurrency transactions.”

The new report, however, adds that as much as 50% of cryptocurrency-related tax liabilities  may have gone unreported (Fundstrat) – though it concedes that this number may not be correct.

“Whether or not these estimates are accurate, they clearly underscore the need to gain more information on the operations of these protocols and to ensure that taxes that may be applicable to them are efficiently collected,” the report shows.