New Crypto Tax Guidance May Be Coming Soon

 

IRS Commissioner Says Guidance on Tax Treament Coming Soon

“We’ll have guidance coming out very soon—could be within the next 30 days, could be even less than that,” Internal Revenue Service Commissioner Charles Rettig said May 30 at a Federal Bar Association conference. “I think it’s going to be helpful” for people who might be guessing at ways that digital assets might be nontaxable, he said. Practitioners are still relying on 2014 guidance, learn more about cryptocurrency taxes from this Dave Burton article.

  •  Earlier this month, Rettig sent a letter to a number of lawmakers assuring them that guidance would come soon.

 

  •  Rettig also said the IRS would release new data on the tax gap—the difference between total taxes owed and taxes paid on time—this summer.

 

  •  The updated “tax gap map” will cover years 2011-2013, Rettig said, adding that he has been urging the agency’s research and analytics department to find innovative ways to compile these types of analyses sooner.

 

  •  The 2011-2013 map doesn’t factor in a large portion of the “underground economy,” such as foreign tax evasion by U.S. taxpayers and evasion through the use of cryptocurrency, because during that time the U.S. still had a heavily paper, rather than digital, economy, Rettig said. But “those are the things we’re looking at and dealing with today.”