Officials of the United States are now determined to end the tax waiver on cryptocurrencies. They dispatched a letter to US Internal Revenue Services (IRS) with the request, “start taxing cryptocurrencies”, written on it. Kevin Brady represented this group. On Thursday, they asked about why IRS is hesitant to tax cryptocurrencies and quoted about the request of taxing digital asset, which was made in 2014.
The letter also covers some important issues like transparency of cryptocurrency laws and regulations and should be provided to common investor. The bureaucrats asked IRS to react to these claims until Oct 17, 2018.
The authors commented in the letter that they want IRS to act against the tax issues of cryptocurrencies by releasing latest guidelines manual for investors so that they can easily understand about tax issues and compulsions related to the digital currencies.
The authors made it clear that IRS should present the inscribed list of policies and regulation to control cryptocurrencies and consider them as taxable product or service. They also stated about the statement made by Official of Tax administration about IRS tax strategy about digital currencies on September 2016.
They also recalled some decisions of IRS regarding punishment and penalties for those who failed to pay tax against virtual currencies. On March 2018, IRS decided to penalize those investors who failed to report income tax results against transactions. They have to face audit against those transactions. They also talked about the type of punishments should be given to the law violators like if they violate the law they will be sent to jail.
Furthermore, the SEC should also play its part to regulate cryptocurrencies.