Cryptocurrency traders and investors in the U.S has some good news to cheer on after Internal Revenue Service (IRS) Commissioner, Charles P. Rettig confirmed that the agency would ‘soon’ release its first crypto tax guidance since 2014.
Rettig revealed the development while writing in response to an earlier request made by a delegation of U.S Congressmen led by Rep. Tom Emmer in April. The lawmakers wanted the IRS to provide clarification about how citizens who use cryptocurrencies can report taxes given the high volatility that characterizes the new asset class.
In the response dated May 16, IRS Commissioner Rettig wrote that he shared the 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.”
As part of efforts to issue the guidance, Rettig acknowledged that the IRS has put into consideration the specific areas where the Congressmen asked his agency to provide clarifications on crypto taxes, namely:
- Acceptable methods for calculating cost basis,
- Acceptable methods of cost basis assignment, and
- The tax treatment of (cryptocurrency) forks.
Commissioner Rettig then disclosed that the IRS would ‘soon’ publish guidance regarding the questions raised by the Congressmen as well as other issues, although, he did not provide a timeline for the release.
Meanwhile, Rep. Tom Emmer, upon receiving the reply, expressed gratitude that the IRS is already working on a crypto tax guidance. Emmer wrote in a statement,
“I look forward to seeing their forthcoming proposal, and working together to serve the American taxpayers.”
Rep. Tom Emmer is also a part of the delegation pushing for the adoption of the U.S Digital Taxonomy Act which aims to liberate ICO tokens from the 72-year old definition restricting the growth of the country’s crypto ecosystem.