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IR-2019-167: Virtual currency: IRS issues additional guidance on tax treatment and reminds taxpayers of reporting obligations

  • 1.  IR-2019-167: Virtual currency: IRS issues additional guidance on tax treatment and reminds taxpayers of reporting obligations

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    Posted 26 days ago
    ​IR-2019-167: Virtual currency: IRS issues additional guidance on tax treatment and reminds taxpayers of reporting obligations

    Virtual currency: IRS issues additional guidance on tax treatment and reminds taxpayers of reporting obligations

    WASHINGTON - As part of a wider effort to assist taxpayers and to enforce the tax laws in a rapidly changing area, the Internal Revenue Service today issued two new pieces of guidance for taxpayers who engage in transactions involving virtual currency.   Expanding on guidance from 2014, the IRS is issuing additional detailed guidance to help taxpayers better understand their reporting obligations for specific transactions involving virtual currency. The new guidance includes Revenue Ruling 2019-24 and frequently asked questions (FAQs).   The new revenue ruling addresses common questions by taxpayers and tax practitioners regarding the tax treatment of a cryptocurrency hard fork. In addition, a set of FAQs address virtual currency transactions for those who hold virtual currency as a capital asset.   "The IRS is committed to helping taxpayers understand their tax obligations in this emerging area," said IRS Commissioner Chuck Rettig. "The new guidance will help taxpayers and tax professionals better understand how longstanding tax principles apply in this rapidly changing environment. We want to help taxpayers understand the reporting requirements as well as take steps to ensure fair enforcement of the tax laws for those who don't follow the rules."   The new guidance supplements the guidance the IRS issued on virtual currency in Notice 2014-21. The IRS is also soliciting public input on additional guidance in this area.   In Notice 2014-21, the IRS applied general principles of tax law to determine that virtual currency is property for federal tax purposes. The Notice explained, in the form of 16 FAQs, the application of general tax principles to the most common transactions involving virtual currency.

    Virtual currency: IRS issues additional guidance on tax treatment and reminds taxpayers of reporting obligations
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    Virtual currency: IRS issues additional guidance on tax treatment and reminds taxpayers of reporting obligations
    IR-2019-167, October 9, 2019 - As part of a wider effort to assist taxpayers and to enforce the tax laws in a rapidly changing area, the Internal Revenue Service today issued two new pieces of guidance for taxpayers who engage in transactions involving virtual currency.
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    Neil Sullivan
    NEIL A.J. SULLIVAN, CPA TEP
    Scarsdale NY
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