US Congress notifies crypto Tax payer problem to IRS

The clarity about crypto-related taxation is an important parameter to be considered, any ambiguity in this may lead to serious problems. Recently congress members on the blockchain committee under the chairmanship of Tom Emmer requested the US Internal Revenue Commissioner (IRS) to grant proper guidance on the filing of the crypto-tax related system.

Emmer along with his committee members drafted a letter in which various issues have been highlighted and presented to IRS for proper answers. The issues linked with virtual currencies cost basis calculation, procedures and taxable income ratio.

The IRS was not able to address the grievances of the tax-related questions in 2014 and the tax-payers are still in a state of despair. The recent committee requested that the IRS should provide proper details as the previous report that was published was 5 years back and is outdated now.

Emmer emphasized that guidance is pre-requisite for systematic reporting of emerging assets and therefore the updated proper guidelines about virtual currencies are necessary and for that, they requested the IRS to work on this matter.

The UK has devised a proper system of transactions and reporting of taxes about virtual currencies and their system is updated and more systematic; as compared to the US where the taxation process so far is not a practical procedure.

The U.S. is lagging behind in this regard. However, the US claims to provide an environment conducive for new industries to flourish and are trying constantly to fulfill its promise. Therefore a bill of elimination of cryptocurrency which was designed previously is presented again to be reconsidered.