US Treasury names development of cryptocurrency tax guidance a priority

US Treasury plans crypto tax guidance.

The US Department of the Treasury confirmed its plans to publish guidance on cryptocurrency taxation. The relevant paragraph is in the “Tax Administration” section of the department’s priority work plan for 2021-2022.

“Rules relating to reporting information about virtual currency under Section 6045,” the document states.

The 2020 plan contained a similar phrase. Section 6045 of the U.S. Internal Revenue Code concerns broker reporting. Each year traditional exchanges are required to send clients and the IRS completed Form 1099s containing information about trading activity. These rules do not currently apply to cryptocurrency platforms.

Earlier, Bloomberg reported that the US Treasury to clarify tax reporting requirements for cryptocurrency companies, but there was no official confirmation. The Treasury’s leadership is meant to reassure industry participants concerned about upcoming changes to the law.

The bipartisan infrastructure bill aimed at modernizing the United States contains new reporting requirements for participants in the digital-asset industry. It also expands the definition of \”broker\” in the U.S. Tax Code.

The bill’s requirements in this form are technically unworkable, for which the document has repeatedly drawn criticism from crypto industry representatives, including Elon Musk and Jack Dorsey.

Some senators share the concerns. Ron Wyden, Cynthia Lummis and Pat Toomey proposed excluding the specified activities from the document and not applying broker norms to them.

One of the bill’s authors — Rob Portman — together with Mark Warner and Kirsten Sinema introduced a competing amendment. Because of procedural issues, the changes were not adopted; it went to the House of Representatives in its original form.

In an open letter, Representative Anna Eshoo to amend provisions relating to cryptocurrencies in the document, but on August 24 the lawmakers voted for the initial version. The next vote is scheduled for September 27.

2021-2022-pgp-initial by ForkLog on Scribd

Read ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analysis.