Coindesk Logo

US Congressional Group Calls on IRS to Clarify Bitcoin Tax Guidance

US Congressional Group Calls on IRS to Clarify Bitcoin Tax Guidance

US Congressional Group Calls on IRS to Clarify Bitcoin Tax Guidance

A US congressional caucus is calling for more guidance from the Internal Revenue Service on the tax requirements for digital currencies like bitcoin.

A US congressional caucus is calling for more guidance from the Internal Revenue Service on the tax requirements for digital currencies like bitcoin.

A US congressional caucus is calling for more guidance from the Internal Revenue Service on the tax requirements for digital currencies like bitcoin.

AccessTimeIconJun 7, 2017, 1:30 PM
Updated Aug 18, 2021, 6:16 PM

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The leaders of a US Congress caucus focused on blockchain are calling for more guidance from the Internal Revenue Service (IRS) regarding the tax requirements for digital currencies like bitcoin.

In a letter dated 2nd June and penned by Representatives Jared Polis and David Schweikert – co-chairs of the Blockchain Caucus, a congressional group which was founded last autumn – the two called on the tax agency to "issue additional guidance on the tax consequences and basic tax reporting requirements for transactions using virtual currencies".

The letter invokes recommendations issued last November by the Treasury Inspector General for Tax Administration (TIGTA), which criticized the IRS for its lack of a comprehensive strategy around digital currencies. At the time, TIGTA said that the agency's shortcomings were leaving investors in the dark and increasing the risk of possible tax avoidance.

Polis and Schweikert encouraged the IRS to "consider the recommendations of the TIGTA and take action based on those recommendations". Notably, they urged the IRS to work with the digital currency space directly as it moves forward.

The co-chairs wrote:

"Further, we encourage the IRS to engage with virtual currency exchanges to better understand their ability to engage in information reporting, including recordkeeping to track realized gain or loss and identify the amounts of virtual currency used in taxable transactions."

This is the second letter sent to IRS from Congress in recent days on the subject of digital currencies. Late last month, a group including Senator Orin Hatch requested a response from the agency about its investigation into digital currency exchange Coinbase. That response is due today, though whether it has been formally delivered to Congress has not yet been announced.

Capitol Hill image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.