Lawmakers Demands For Clarity on Crypto Tax Guidance From IRS
A group of U.S. lawmakers has recently created buzz by calling upon the Internal Revenue Service (IRS) in an open letter, to further clarify crypto taxation guidelines and make it more comprehensive in nature.
In a letter dated Sept. 19 and published on the House Ways and Means Committee website, five representatives — Kevin Brady (R-TX), David Schweikert (R-AZ), Lynn Johnson (R-KS), Darin LaHood (R-IL), and Brad Wenstrup (R-OH) — “strongly urged” the IRS to issue comprehensive, updated guidance on federal tax obligations associated with disposing cryptocurrency assets, either through trading or other means.
In it, the lawmakers claimed that the IRS has failed to provide the public with proper guidance to virtual currency tax strategies. Although the Treasury Inspector General for Tax Administration reported that the IRS needed to release an updated guide back in September of 2016, the IRS has remained silent on the matter to this date.
“We, therefore, write again today to strongly urge the IRS to issue updated guidance, providing additional clarity for taxpayers seeking to better understand and comply with their tax obligations when using virtual currencies,” the lawmakers state.
The lawmakers argue that while the IRS has proactively continued to remind taxpayers of the penalties for non-compliance with its guidance, its failure to introduce a more robust taxation framework “severely hinders taxpayers’ ability” to meet their obligations.
The letter closes by stating that the representatives will be asking the Government Accountability Office to undertake an audit on the matter.
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