IRS Set to Issue New Guidance on Treatment of Cryptocurrencies

IRS Commissioner Charles Rettig has announced the IRS will be issuing additional guidance on the taxation of cryptocurrencies, also referred to as virtual currencies.

Since 2014, when the IRS issued its initial guidance on the trading of cryptocurrencies, lawmakers and taxpayers alike have been asking for further direction on the tax treatment of cryptocurrencies. This led lawmakers to issue a request to the IRS in September of 2018, formally requesting additional guidance. Rettig announced the agency will be issuing new guidance within the next 30 days.

The new guidance has been said to address the following:

• Acceptable methods for calculating cost basis
• Acceptable methods of cost basis assignment
• Tax treatment of forks

If you have questions about cryptocurrencies or other tax related issues, contact your Zinner & Co. tax specialist.