Today, one of the priorities of the US Internal Revenue Service (IRS) is issuing of more extensive guidance on cryptocurrencies. This was reported by the Commissioner of IRS Charles Rettig in a letter addressed to the members of the US Congress. Back in April, Tom Emmer, Member of Congress, made a request to IRS asking to “issue more robust guidance clarifying taxpayers’ obligations when using virtual currencies”.
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According to the response letter, the IRS confirms that the previous guidance is outdated while cryptocurrencies have significantly grown since the guidance release. The new guidance will address issues raised in the April letter, namely:
- the acceptable methods of calculating cost basis;
- acceptable methods of cost basis assignment;
- tax treatment of forks.
The Congress representatives were satisfied with the response. In turn, Tom Emmer expressed gratitude that the IRS is already working on a crypto tax guidance.
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