The United States Internal Revenue Service (IRS) is responding to the long-standing questions of crypto investors on how to file in taxes on returns made from cryptocurrencies. This, according to a U.S tax attorney is coming later than expected.
Tax Attorney Belives Tax Collectors Are Playing Catch Up
In an interview session with Bloomberg, Shartsis Friese tax attorney, Dashiell Shapiro said that the United States tax collectors, in an attempt to clear the air on a long-standing issue of how tax payments relating crypto income can be made, are several years late. According to Dashiell,
The IRS is playing a catch-up here. The last time they issued a guideline was in 2014. And now the crypto currency market has turned into a $200 billion market. So, investors have been demanding greater clarity and guidelines on how to propose their cryptocurrency transaction and IRS is responding to this demand but doing so several years too late according to many.
Crypto Exchanges Waiting For Guidance From IRS
According to Dashiell, many people, particularly investors involved with cryptocurrencies have been demanding a clear set of guidelines for many years. IRS responding to the requests at this time only gave time for the crypto industry to become bigger, and getting existing investors to comply with the new guidelines will require an enormous amount of energy and time.
Dashiell further explained that exchanges are reacting to this development by waiting for guidelines from IRS and the IRS is in turn waiting for guidelines from Congress. As IRS believe it is not in their duty to tell crypto exchanges what to do, Congress may have to step in to say that crypto exchanges have to report trades like stock exchanges do.
The New Guidelines on Crypto Airdrops and Forks
According to Dashiell,