Since 2014 the IRS has Provided No Updates to Bitcoin and Crypto Asset Tax Rules, But Now That is Changing
Have you tried to pay your crypto taxes this year and you found it to be very difficult to do it because you simply did not know the proper procedures? Well, this is really not your fault. The U. S. Internal Revenue Service (IRS) has been way too slow in order to clarify how people should pay their crypto earnings.
If you want to know how slow the IRS has been in creating its official crypto tax guidance, you should know that they started in 2014. Yes, that’s right, the IRS started this mission five years ago and it was not successful yet. Now, the agency’s commissioner, Charles P. Rettig, told a lawmaker, Republican Tom Emmer, that a new plan will be released soon.
Rettig wrote to the congressman that he shared his beliefs about how important it was to provide clarity on such basic issues like virtual taxation. According to him, that was actually one of the priorities of the IRS right now.
This way, the entity is working on ways to create a guidance on the best ways of calculating your taxes, Rettig affirmed. He ended by affirming that these issues will be solved “soon”.
The IRS Is Singing The Same Song For Five Years
This could be considered a spark of hope for crypto investors, however, the truth is that the IRS has already affirmed this so many times that it is hard to really believe in it right now, that is the truth. The first reports of the IRS talking about the issue date to 2014 and no progress was made since then, so it is difficult to believe in the sincerity of the organization.
According to Emmer, he’s glad that the IRS will issue the guidance, so it looks like the entity was able to make at least one person buy its narrative this time. Emmer also affirmed that the taxpayers decidedly deserve more clarity because these are very basic questions, so they should not be so hard to answer and there is a lot of people who are interested in the subject because they really need to know.
Emmer is a part of the Congressional Blockchain Caucus, an important group created by the lawmakers of the U. S. in order to solidify the legal requirements and the regulations of the crypto sector. At the moment, the group is one of the main pro-regulation forces within the government.
It is not fair that people will have to pay their taxes without knowing the proper rules, so if the IRS wants the system to continue without people protesting about its slowness and efficacy, it should do something now instead of “soon”.
Bitcoin’s price is $5,933.74 BTC/USD exchange rate today. The real-time BTC market cap of $108.55 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $5.09 Billion and live coin value change of BTC -5.27 in the last 24 hours.