US Audit Office: “IRS Guidelines for Taxation of Crypto Assets Need to be Added”

The US Accounts House (GAO) warns that the US Tax Service (IRS) for Cryptocurrency TaxReporting remains unclear and may not be binding.

Ownership reports and income from crypto assetsIt remains unclear, since IRS did not codify its position in the Bulletin of internal state revenues. The taxation management of digital assets from 2019, according to the Accounts Chamber, is also not considered an official document that is solving the problems of interpretation, Forbes reports.

Moreover, the leading principles of IRS are stillThey remain indefinite to which digital assets are subject to taxation. Only last week, IRS once again edited the information on its website and changed the definition of virtual currencies by removing game tokens from it.

GAO notes that the IRS has not yet clarifiedthat the section with frequently asked questions on the website of the Tax Service is not an official position of the department and is subject to change without notice. Removing game tokens from the definition of virtual currencies is another example of how the IRS is not completely sure which assets should be taxed.

The Accounts Chamber warns that in its powerstax reporting advice is not included, and the agency only expresses an opinion on the current situation and provides analysis. GAO claims that the IRS has launched a program to clarify reporting requirements for crypto assets and is working to ensure that the forms are completed correctly.

In addition, the Accounts Chamber notes that IRS is notI released any guidelines for assets on international platforms. These exchanges are not required to submit reports to IRS. In the coming months, there may be more clarity regarding whether assets on foreign exchanges of cryptocurrencies fall under the requirements of the law on tax reporting on foreign accounts (FatCA) and reports on foreign banking and financial accounts (FBAR).

Due to regulatory uncertainty, manyExchange has already stopped serving US citizens. In January, the Bitmex exchange announced the termination of services in the United States and Canada. Binance also limited access to trade for users from the United States last summer, and then opened the local cryptocurrency exchange in the United States.

</p></p>