IRS plans to issue crypto tax guidance

Written on Jun 17, 2019

The IRS says it’s working on its first tax guidance for cryptocurrency since 2014.

In a reply to Rep. Tom Emmer’s request for further guidance on reporting cryptocurrencies, IRS Commissioner Charles Rettig outlined a non-specific plan to release in-depth guidance soon.

“I share your 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,” Rettig wrote.

He said the IRS is working on guidance for “acceptable methods for calculating cost basis, acceptable methods of cost basis assignment, and the tax treatment of forks.”

“I am glad to hear of the IRS’ plans to issue guidance on this important issue,” Emmer said in a statement after receiving Rettig’s reply. “Taxpayers deserve clarity on several basic questions regarding federal taxation of these emerging exchanges of value. I look forward to seeing their forthcoming proposal and working together to serve the American taxpayers.”

Emmer’s original request called for the IRS to “issue more robust guidance clarifying taxpayers’ obligations when using virtual currencies” with a deadline of May 15, 2019.

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