US Senate Finance Committee asks digital asset community how to tax it in open letter
Community members may want to learn about the intricacies of tax law before responding, but they have two months to do so.< /p >
On July 11, U.S. Senate Financial Services Committee Chairman Ron Wyden and prominent member Mike Crapo released an open letter to the digital asset community seeking comment on the taxation of digital assets . The senators seek solutions to very complex tax problems, so much so that they have offered background readings from the Joint Committee on Taxation to prepare respondents.
The 1986 Internal Revenue Code provides "no simple classification for digital assets," the senators said. They asked a large number of questions grouped into nine areas, explaining:
"In recent months, the Finance Committee has launched a bipartisan effort to identify key issues that lie at the intersection of digital assets and tax law."
The letter covered issues relating to fair value (mark-to-market) accounting, commercial safe harbor to encourage foreign investment, digital asset lending, wash sales, implied sales ( which are closely related to short selling), income from staking and mining, "non-functional currency", foreign company reporting, and valuation and substantiation on an exchange. The questions frequently refer to specific sections of the tax code.
Related: US Lawmakers Accuse Crypto Companies of 'Tax Gap' in Treasury Letter
So far, much of the Internal Revenue Service's (IRS) crypto efforts have gone into combating criminal activity. He bragged earlier this year about
Community members may want to learn about the intricacies of tax law before responding, but they have two months to do so.< /p >
On July 11, U.S. Senate Financial Services Committee Chairman Ron Wyden and prominent member Mike Crapo released an open letter to the digital asset community seeking comment on the taxation of digital assets . The senators seek solutions to very complex tax problems, so much so that they have offered background readings from the Joint Committee on Taxation to prepare respondents.
The 1986 Internal Revenue Code provides "no simple classification for digital assets," the senators said. They asked a large number of questions grouped into nine areas, explaining:
"In recent months, the Finance Committee has launched a bipartisan effort to identify key issues that lie at the intersection of digital assets and tax law."
The letter covered issues relating to fair value (mark-to-market) accounting, commercial safe harbor to encourage foreign investment, digital asset lending, wash sales, implied sales ( which are closely related to short selling), income from staking and mining, "non-functional currency", foreign company reporting, and valuation and substantiation on an exchange. The questions frequently refer to specific sections of the tax code.
Related: US Lawmakers Accuse Crypto Companies of 'Tax Gap' in Treasury Letter
So far, much of the Internal Revenue Service's (IRS) crypto efforts have gone into combating criminal activity. He bragged earlier this year about
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