Tax-free cryptocurrency transactions could come with reporting obligations
By Elizabeth C. Crouse, Mary Burke Baker, Robert M. Crea, Claire S. White and Rachel D. Trickett
As cryptocurrencies such as Bitcoin and Ethereum become more prevalent in investment circles and acceptable for commercial transactions, the U.S. Internal Revenue Service (IRS) has said little other than to label “virtual currencies” as property and state that transactions involving virtual currencies may be subject to taxation under generally applicable law. However, on September 7, the Congressional Blockchain Caucus introduced the Cryptocurrency Tax Fairness Act which would exempt certain cryptocurrency transactions and create a cryptocurrency-specific information reporting requirement.
To read more about this update, click here.