The United States Senate Committee on Finance solicited the cryptocurrency industry’s assistance in better understanding how Congress might address the tax difficulties and opportunities posed by digital assets.
Chairman Ron Wyden and Ranking Member Mike Crapo posed a series of questions about nine topics in a letter made public on Tuesday, including digital asset loans, wash sales, staking, and mining.
” In recent months, the Committee on Finance initiated a bipartisan effort to identify key questions that lie at the intersection of digital assets and tax law,” the letter said. The Internal Revenue Code of 1986, as amended (IRC), distinguishes between different types of property, but there is no simple classification for digital assets.” For taxpayers, this ambiguity generates difficult reporting issues. The Committee will collect responses through September 8, 2023.
Last month, House legislators encouraged the Internal Revenue Service (IRS) to reveal anticipated crypto tax rules as soon as possible so that the industry can be brought into full compliance. In April, an IRS official stated that the agency wanted to execute a new operating plan for dealing with cryptocurrencies within the next “12-ish” months.