Regulatory Series on Cryptocurrencies: US tax-payers need clarity on IRS for crypto-tax filing before deadline

The recent bull rally leads the pioneer cryptocurrency (Bitcoin) and its counterparts’ market-capitalization growth amid topsy-turvy trend in the intermediate term, that puzzles quite a few investors and their CPAs struggling with the uncertainties (as deadline nears, April 15thfor filing taxes in the United States) and surprises during tax season owing to many reasons (predominantly, lack of clarity in the regulatory framework). 

Although some returns were given the extension, awaiting further guidance from the IRS, while other taxpayers found themselves faced with an unexpectedly large tax bill as a result of misconceptions surrounding how these transactions are taxed.

The United States Congress representatives have given a joint appeal to the Internal Revenue Service (IRS) for better clarity on reporting crypto taxes.

21 US representatives gave a letter of bilateral request to the U.S. tax authority for providing proper guidance as to how the cryptocurrency taxes are to be reported. 

Wherein the IRS’s precedents to establish the treatment of crypto-asset transactions for the purpose of tax computation are stated by these representatives.

Amid these movements, the representatives in the United States House of Representatives have reinforced the Token Taxonomy Act. The bill would exclude cryptocurrency from being classified as a security.

The bill was initially proposed last December by Reps. Warren Davidson (R) and Darren Soto (D), and seeks to exclude digital currencies from being defined as securities by amending the Securities Act of 1933 and the Securities Act of 1934.

Currency Strength Index: FxWirePro's hourly BTC spot index is flashing at -133 levels (which is highly bearish), hourly USD spot index was at -71 (bearish) while articulating at (09:04 GMT). 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex