In a letter sent to Internal Revenue Service (IRS) Commissioner Charles P. Rettig, the Members of Congress’ Blockchain Caucus has requested for a more streamlined tax policy on crypto donations.
U.S. Congressional lawmakers wish to clarify the policies that cover staking and forked assets.
According to legislators, tax reporting becomes more complicated because of the different rules covering tax reports on dollar and crypto donations.
In crypto reporting, it is a requirement to report fair market value, which, according to IRS, can be checked from the value of crypto on an exchange.
And since crypto donations aren’t covered by this policy, lawmakers are proposing that this requirement, meant to increase transparency, be implemented on them.
The fine print
In the letter, the lawmakers stated: “I urge IRS to simplify this unnecessarily, and potentially unintended, complex reporting requirement for cryptocurrency donations.”
The lawmakers propose that Form 8283 must be modified to remove the appraisal requirement.
They also added that for donations exceeding $5,000, taxpayers must complete a separate section that requires a “written qualified appraisal by a qualified appraiser.”
The letter was signed by Representative Josh Gottheimer (New Jersey), Bill Foster (Illinois), Tom Emmer (Minnesota), Tedd Budd (North Carolina), Ro Khanna (California), and David Schweikert (Arizona).
What is IRS?
The Internal Revenue Service is a U.S. government agency that handles the collection of taxes and enforcement of tax laws. The agency’s top mandate is the collection of individual income taxes and employment taxes. It also oversees retirement plans and conducts refunds for overpaid taxes.
IRS, which was established in 1862 under the presidency of Abraham Lincoln, operates under the authority of the Department of Treasury.
Image courtesy of Cointelegraph News/YouTube
Source: https://bitcoinerx.com/blockchain/clearer-tax-policy-for-cryptocurrency-donations-urged/
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