WASHINGTON—A pair of U.S. lawmakers are asking the IRS to clarify bitcoin tax guidelines.
Reps Jared Polis (D-CO) and David Schweikert (R-AZ) have written Internal Revenue Service Commissioner John Koskinen asking for additional guidance for reporting virtual currency transactions, reported Cryptocoins News
They acknowledged the agency has offered taxpayers some virtual currency guidance in regard to taxation, but additional guidance is needed to assist businesses that accept virtual currency, the congressmen noted.
Guidance is also needed to help individual taxpayers, the lawmakers noted in their letter. Guidance is needed to increase reporting on income gained or lost on virtual currency transactions, the Congressmen stated, according to Cryptocoins News
The IRS has offered guidance on complying with tax compliance risks related to virtual currencies since 2007, the congressmen noted. The agency’s Electronic Business and Emerging Issues policy group has stated there are tax consequences related to virtual currency transactions. Current policies could lead to underreporting of such tax consequences, they said.
In 2014, the agency released answers to frequently asked questions about virtual currency tax implications. The notice classified virtual currency as property and noted that a taxpayer could have taxable income as a result of certain transactions, Cryptocoins News said.