IRS’ new FAQ update might discourage cryptocurrency donations

The US Internal Revenue Service (IRS) recently
introduced new changes to its FAQ, in an attempt to clarify the situation
regarding donations made in cryptocurrency. However, the new updates may
actually have negative consequences for crypto donations, rather than positive.

According to the IRS, anyone who donates more
than $5,000 in crypto to charities will need to have their donation appraised.
The update has already caused concern, with The Giving Block charity’s
co-founder, Alex Wilson, stating that the new appraisal requirement will ‘make
people think twice about donating more than $5,000.’

As many may already know, getting an appraisal
can be rather expensive. Meanwhile, the US taxes are already complicated
enough, without adding even more entries to it. Furthermore, Wilson stated that
any qualified appraiser would simply check the prices on CoinMarketCap,
spending 30 seconds to do the job, and charging $500 for their service.

In the end, Wilson expects that anyone who…