IRS Gets Another Nodge by Over 20 Lawmakers to Share More Feedback Regarding Tax Rules

There is a curious situation happening in the United States right now. It is as if the Internal Revenue Service (IRS) simply do not want crypto investors to pay their taxes. Before you commemorate, though, you should that they really want you to pay your taxes, they just simply cannot find a way to explain to people how to do it.

Now, with the deadline for taxes getting nearer, 20 lawmakers from the country have urged to IRS to simply give a minimum acceptable explanation on how crypto investors should pay their taxes.

A letter was sent from these lawmakers to Charles Rettig, the IRS Commissioner, affirming that the taxpayers are bound to have some difficulties calculating the money that they owe and the IRS is simply not answering enough questions about it. This letter was a bipartisan effort and it is not even the first one. Around half a year ago, the lawmakers have sent a very similar letter that was still unexplained.

Despite the crypto market growing exponentially from 2017 onward, the guidance issued by the IRS is from 2014. That’s right, the rules are from five years ago despite the fact that so much has changed since then.

According to the letter sent by the lawmakers, the current rules are too ambiguous and several important questions remain unexplained, which is why so many people seem to be very pissed off.

A Clearer Guidance Needs To Be Created Now

On the document, the lawmakers have highlighted three points that need more clarity in order to help the investors who are willing to pay their taxes.

The first point is that there needs to be more clarity on the methods to calculate the cost basis of virtual currencies and what the IRS considers to be a reasonable manner to apply it, according to its own legislation.

Secondly, there is the question of whether the taxpayer needs to identify when they spent currencies and what methods are acceptable. Finally, there is the treatment of hard forks and how to tax them. Bitcoin had a hard fork in 2017 when Bitcoin Cash was born, so this is a very important question.

Nobody knows whether the IRS will finally answer this time but it looks like the politicians will not stop going after an explanation. The regulators of the U. S. are being notoriously slow in order to regulate crypto matters, so we are probably still away from finding a great solution for all this.

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Gabriel Machado
Brazilian journalist who is interested in the future of the financial world. Has a special interest in the blockchain technology and the global financial markets. Covers economic and technology news with a focus on the fintech industry and has been writing about the cryptocurrency market since the start of 2017.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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