RATE Group | IRS Releases First Cryptocurrency Tax Guidance Since 2014
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IRS Releases First Cryptocurrency Tax Guidance Since 2014

09 Oct IRS Releases First Cryptocurrency Tax Guidance Since 2014

Posted at 19:48h in Cryptocurrency News by

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New IRS guidance aims to clarify the tax treatment of transactions involving Bitcoin and other virtual currencies.

Photographer: Luke MacGregor/Bloomberg via Getty Images

Oct. 9, 2019, 3:59 PM

IRS released guidance advising virtual currency holders how to pay taxes on investments.

The agency Oct. 9 released a ruling (Rev. Rul. 2019-24) and a question-and-answer document that tell cryptocurrency owners and their tax advisers when taxes are due, an area that has been a source of confusion for years.

  • The guidance, the first in this area since 2014, addresses how to report gains and losses and what do if someone is paid in virtual currency, such as bitcoin, as wages
  • The guidance also tells users how to treat hard forks, which occur when changes to software create two or more separate versions of a cryptocurrency—for example, bitcoin versus bitcoin cash.
  • The new guidance comes after members of the bipartisan Congressional Blockchain Caucus urged IRS in an April letter to…

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