With Bitcoin spiking more than 120 percent since the start of 2019, the U.S. Internal Revenue Service (IRS) says it is readying an updated set of guidelines to cover cryptocurrency taxation.
IRS Preparing Additional Crypto Tax Guidelines
In a letter to a bipartisan group of U.S. Congressmen, the IRS Commissioner Charles Rettig declared that clear-cut Bitcoin tax guidelines were a top priority for the agency. The letter was in reply to an April 2019 letter from the 21-member congressional coalition led by Rep. Tom Emmer (R-MN).
An excerpt from the reply sent by Commissioner Rettig reads:
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. Specifically, your letter mentions (1) acceptable methods for calculation cost basis; (2) acceptable methods of cost basis assignment; and (3) tax treatment of forks. We have been considering these issues and intend to publish guidance addressing these and other…