IRS: will give priority to issuing cryptocurrency tax guidance

According to Cointelegraph's May 21 report, according to a recent letter from the US Internal Revenue Service (IRS), the agency will give priority to issuing cryptocurrency tax guidance.

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The US Internal Revenue Service’s letter was issued at the request of 21 members of Congress including Tom Emmer, who previously asked the IRS to provide clear information on the tax return for cryptocurrency holdings. . In a letter to the tax authorities, lawmakers said that the IRS still has a lot of ambiguity about such emerging assets on some important issues of US federal taxation.

In an email replied to Tom Emmer, Charles Rettig, the head of the IRS, said that the agency "will give priority to issuing relevant guidance." The guidance will include, in particular, acceptable calculation methods for actual costs, allocation of actual costs, and tax treatment for forked coins.

The US Taxation Commissioner Charles Rettig also stated in the letter that virtual currency is considered property, so the current tax principles applicable to property transactions also apply to cryptocurrency transactions. He further revealed that the IRS has been working with industry professionals to define the scope of the guidance.

Tom Emmer has previously introduced three bills that support blockchain technology and cryptocurrency. These bills will prompt the US federal government to provide a “simple legal environment” and the government should reduce fines for individuals reporting diaspora digital assets before the IRS issues reasonable tax guidance. According to Emmer, “taxpayers can only abide by the law if the law is clear.”

As early as January of this year, Tom Emmer and Congressman Darren Soto submitted a "safe harbor for some uncontrolled blockchain developers and blockchain service providers to protect them from licenses." And the registration restrictions" motion. The bill will protect companies offering unmanaged cryptocurrency services from certain state transfer laws.