IRS Mute on Calls to Clarify Foreign Crypto Tax Reporting Rules | BTCMANAGER
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The U.S. Internal Revenue Service (IRS) is yet to clarify which Foreign Account Tax Compliance Act (FATCA) rules apply to crypto tax filings. Meanwhile, a U.S. Congress watchdog is saying aspects of the updated crypto taxation guidelines published by the IRS in 2019 are not enforceable.
Concerning FATCA Compliance for Crypto Tax Reporting
According to Bloomberg Tax, the Government Accountability Office (GAO) says the IRS should clarify how FATCA applies to crypto tax reporting. In a report issued on Wednesday (February 12, 2019), the Congressional watchdog says the absence of clear-cut guidelines on such matters creates problems with transparency as well as preventing tax prayers from fully understanding their obligations.
In response, the IRS disagreed with GAO stating that it was not yet time to deal with matters relating to crypto foreign reporting. However, the IRS is yet to issue any disclaimer that would make its official stance clear to the public.
For GAO, the lack of clarity in the updated IRS crypto tax guidelines are counterproductive to the agency’s aim of ensuring greater compliance among cryptocurrency owners in the U.S.
The GAO report also contended that some parts of the 2019 crypto tax updates issued by the IRS are unenforceable. An excerpt from the report explaining this argument reads:
“Part of the 2019 guidance is not authoritative because it was not published in the Internal Revenue Bulletin (IRB).