US Lawmakers Urge IRS to Update Bitcoin Tax Guidelines


21 September, AtoZ Markets – A group of Republican lawmakers in the U.S.A submitted a letter to the Nation’s Internal Revenue Service (IRS), on Sep.19th, requesting the agency to issue a key guideline for taxpayers who make profit of cryptocurrency investments.

The five congress members stressed in their open-letter, that the agency has taken considerable time to legislate the laws needed for regulating the taxation procedure of making profits of investing in cryptocurrency.

The IRS had been considering the enforcement procedure of preliminary rules since 2014, when it was issued, rather than updating the guideline asked for.

In response, the group that consists of Kevin Brady, Lynn Jenkins, David Schweikert, Darin LaHood and Brad Wenstrup, sent a letter to the respective agency last may, expressing their concerns over the agency’s decision to ramp up enforcement of cryptocurrency-related violations without also setting a “comprehensive virtual currency strategy” to help taxpayers more successfully navigate the murky regulatory code.

In this week’s letter, the group expressed their criticism to the agency, saying: “More than a year after our initial letter, the IRS continues to expand its enforcement activities without issuing any further guidance for taxpayers. We therefore write again today to strongly urge the IRS to issue an updated guidance, for providing additional clarity for taxpayers seeking to better understand and comply with their tax obligations when using virtual currencies.”

“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 added in their letter to IRS.

October 17th Is The Deadline Deadline

In their last letter also, the congress members pointed out that they were concerned the IRS “was failing” to adequately advise taxpayers of their reporting obligations, emphasizing that this is a negligence of “one of the agency’s primary duties as a government organization”.

“A key component of the IRS’s duties as the nation’s tax administrator is to assist taxpayers in understanding what their tax obligations are and how they may best meet them. A failure to put forth adequate guidance severely hinders taxpayers’ ability to do so. The IRS has had four years to work through these issues since its preliminary guidance was issued, providing more than adequate time for the IRS to thoughtfully consider what additional information is needed.”, the legislators wrote in their letter to IRS.

The lawmakers concluded their notice by urging the IRS to “expeditiously issue more robust guidance” on cryptocurrencies, setting the Oct. 17 as deadline the agency has to commit to, for providing the Ways and Means Committee with information about its plans to draft and issue updated guidance, as well as a timeline for its eventual publication.

Think we missed something? Let us know in the comments section below.

    Share Your Opinion, Write a Comment