IRS Plans to Issue Crypto Tax Guidance in 12 Months

IRS Plans to Release Crypto Tax Guidance Within a Year

The U.S. Internal Revenue Service’s crypto asset project director, Julie Foerster, announced from the stage at Consensus 2023 that the agency hopes to issue crypto tax guidance “in 12-ish months.” While the IRS considers cryptocurrencies to be convertible virtual assets that can be used as payment for goods and services, digitally traded between users, and exchanged for other currencies, for federal tax purposes, they are considered property, and as such, users are required to report their digital assets’ activity on their tax returns.

Foerster emphasized the evolving landscape of digital assets and the need for increased communications between the agency and the crypto community. She urged people to comment on the March proposal to tax non-fungible tokens (NFT) like other collectibles before the comment period closes on June 9.

The IRS is planning to change how it looks at cryptocurrency and wants to work more with the industry. She added the U.S. tax agency is also talking to some of its foreign counterparts to find best practices in crypto taxation.

“I think events like this and other events that we’ve attended also is providing us an insight or perspective internationally,” she said.

Foerster highlighted that the agency needs to have “the right tools and the right people” and urged people to engage with the IRS to improve their plan.

“We are engaging with you all so we get it right and build a plan,” she said.
[h/t Glenn Williams]