The US Senate Committee on Finance is looking to the cryptocurrency industry for assistance in understanding how Congress can address the tax issues and opportunities presented by digital assets. In a letter released on Tuesday, Chairman Ron Wyden and Ranking Member Mike Crapo asked a series of questions related to nine topics, including loans of digital assets, wash sales, and staking and mining.
The Committee on Finance has started a bipartisan effort to identify the key questions at the intersection of digital assets and tax law, the letter stated. The Internal Revenue Code of 1986, as amended (IRC), does not have a straightforward classification for digital assets. This uncertainty creates complex reporting issues for taxpayers…
The Committee will be accepting answers until September 8, 2023. Last month, House lawmakers urged the Internal Revenue Service (IRS) to quickly release planned crypto tax rules so the industry can be brought into full compliance. An IRS official said in April that the agency is aiming to implement a new operating plan for cryptocurrencies in the next 12-ish months.