The IRS issued guidance in 2014, through Notice 2014-21, on how to report income from virtual or “crypto” currency transactions. The IRS has since developed a “Virtual Currency Compliance” program focusing on U.S. taxpayers who may not be reporting, or correctly reporting, virtual currency transactions. The IRS has now announced it will be issuing notices to over 10,000 specific U.S. taxpayers warning these recipients that they have been identified as having engaged in virtual currency transactions and their U.S. tax compliance obligations. There are three (3) target ...
The Internal Revenue Service (“IRS”) will be releasing guidance on the tax treatment and reporting requirements of “virtual currencies” (i.e., cryptocurrencies) very soon, according to Internal Revenue Service Commissioner Charles (“Chuck”) Rettig.
Commissioner Rettig’s statement was prompted by a letter sent to him on April 11, 2019 by a bipartisan group from the House of Representatives. The letter urged the IRS to issue guidance on the tax consequences and basic reporting requirements for virtual currencies. In particular, the Representatives’ letter ...