February 20, 2024

Congressmen asked US Internal Revenue Service to clarify token distribution issues

Eight members of the US House of Representatives have asked the Internal Revenue Service (IRS) to expandrecommendations for paying taxes on the distribution of tokens and forks of cryptocurrencies.

“In April, we already requested guidance onpaying taxes on cryptocurrency revenues, and we are very pleased that you have issued such a guide that clarifies many issues. But we are also concerned that this guide raises new issues that need to be addressed. It's about tokens distribution and cryptocurrency forks. This is especially sad in view of the years past after the fork of Bitcoin Cash and three years after the fork of Ethereum, ”the letter says.

Congressmen emphasized that the current rules "create potentially unreasonable tax obligations for users of new, important technologies and lead to injustice."

“We hope the IRS recognizes this areanew and evolving, and will provide clear rules at the time of the release of the new manual. We thank the agency for the release of the current edition and offer a closer cooperation with the industry in the future, ”the legislators noted.

In their letter, congressmen asked planswhether the IRS allocate the distribution of tokens into a separate segment and when it will be done, as well as how to deal with forks of cryptocurrencies, the cost of which can significantly differ from the value of the underlying asset.

In addition, in November it became known that the IRS was worried about the potential problems that cryptocurrency kiosks and crypto machines carry.