A couple hoping to pay off their tax debt with a 6-year installment agreement cannot ignore the IRS’s insistence that they instead pay immediately with their $7 million in cryptocurrency.
The IRS issues a statement of work request for consultants to assist with virtual currency examination, similar to the HMRC contract on January 17, 2020.
The IRS indicates it will consider converting frequently asked questions (FAQs) on cryptocurrency transactions into “binding” guidance.
The Digital Chamber of Commerce issues a letter to the IRS requesting guidance on the information reporting obligations of the digital asset industry, saying that current guidance fails to provide adequate information on how businesses should comply and that clearer guidance would benefit both [...]
Representatives of cryptocurrency exchanges urge IRS officials to find a balanced approach to requiring third-party reporting of cryptocurrency transactions.
At the annual International Fiscal Association US branch meeting in Boston, IRS representatives are pressed for clearer answers about some aspects of its cryptocurrency revenue ruling (2019-24). The IRS maintains that the guidance “speaks for itself.”
The American Institute of Certified Public Accountants (AICPA) drafts a letter to the IRS to ask for clarity on the taxation of virtual currency guidance.
IRS Commissioner Rettig indicates that commentators have overanalyzed the checkbox on Schedule 1 of Form 1040. Practitioners respond by saying the uncertainty of what constitutes a “financial interest” in virtual currency could expose taxpayers to willful conduct claims if they incorrectly answer.
The IRS updates the cryptocurrency FAQs to indicate that taxpayers who buy or earn video game currencies do not have to report those transactions if the currency is used only within the game.
The US Government Accountability Office (GAO) issues a study on taxation of cryptocurrency. It recommends that the IRS clarify that part of the 2019 guidance is not authoritative and take steps to increase information reporting, and that the US Financial Crimes Enforcement Network (FinCEN) [...]
