The US Internal Revenue Service (IRS) is preparing to submit updated rules on tax accrual and payment when working with Bitcoin and other cryptocurrencies. The changes that the IRS intends to release in the coming weeks have been made under pressure from Congress, where they are convinced that more precise guidance is needed on the taxation of this asset class.
Until now, in the 2014 IRS regulations, cryptocurrencies are defined as “virtual currencies” and belong to the category of property. In addition, the Internal Revenue Service does not recognize digital currencies as a legitimate payment instrument.
The exact content of all changes in the legislation is not yet known and it is possible that a large number of terms and definitions will be subject to corrections. According to the IRS letter to Congressman Tom Emmer, the new version of the guide will raise a number of issues, including methods for calculating and paying taxes.
In addition, it was reported that the new rules will clarify questions regarding the calculation of the basic value of the asset, as well as the taxation of tokens obtained as a result of hard forks. Also an important point in the new instructions will be the proposal to Congress not to tax exchange transactions in the amount of up to $ 600.
It should be noted that representatives of the cryptocurrency industry often blame the US authorities for the lack of clarity in matters and regulation that inhibit the development of innovations. In response, Congress submitted an application to the IRS to review the rules for cryptocurrency.