The US Internal Revenue Service (IRS) plans to issue updated guidance on the taxation of cryptocurrencies, according to IRS Commissioner Charles Rettig. A 2014 IRS notice requires cryptocurrency to be treated as property. However, Rettig acknowledged that the use of virtual currencies has since evolved to include methods of exchange and investment vehicles. “Virtual currency is a new type of asset for tax purposes,” he said.
The US Internal Revenue Service (IRS) plans to issue updated guidance on the taxation of cryptocurrencies, according to IRS Commissioner Charles Rettig. A 2014 IRS notice requires cryptocurrency to be treated as property. However, Rettig acknowledged that the use of virtual currencies has since evolved to include methods of exchange and investment vehicles. Rettig said the forthcoming guidelines should include acceptable methods for calculating cost basis, acceptable methods of cost basis assignment, and tax treatment of cryptocurrency “forks”.