Tax
Aug. 29, 2019
IRS warning cryptocurrency users about taxes, but guidance still elusive
One problem the IRS faces with cryptocurrency (that it did not face with Swiss Bank accounts to the same extent), is that the tax reporting rules for crypto are not at all clear. The IRS issued limited guidance five years ago, in Notice 2014–21. But it left a number of big questions unanswered.
Dashiell C. Shapiro
Counsel
Shartsis Friese LLP
litigation, tax
Email: dshapiro@sflaw.com
Univ of Chicago Law School
Dashiell is a former U.S. Department of Justice Tax Division honors attorney.
This summer, the IRS has begun sending letters to more than 10,000 taxpayers, warning them to report income and pay taxes on cryptocurrency transactions. This is probably the opening shot in what promises to be a long battle to encourage taxpayers to voluntarily report cryptocurrency gains. Why does the IRS care? And why send these letters?
With the total cryptocurrency market cap pushing $300 billion, the IRS clearly believes there ...
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