Topic: [2016-06-16] IRS Urged to Give Guidance on Bitcoins (Read 313 times)
Wow, based on my understanding of existing guidance and a few simple questions that don't even mention that guidance being answered by a CPA, it looks to me like the AICPA showed that they are incompetent and can't even do simple web searches to find past guidance instead of using old guidance and common sense to reduce their number of questions from 10 to 4. I hope this doesn't set the IRS (in even more of a position than they already had) to change things and screw up anyone who has been following the old guidance.
In a letter late last week to the US Internal Revenue Service the American Institute of CPAs (AICPA) called for the tax authority to issue more guidance on the taxation of virtual currencies such as Bitcoin.
Explaining the need for extra guidance, Troy Lewis, the chair of the AICPA, said “Virtual currency transactions, in which taxpayers increasingly engage, add a new layer of complexity to the analysis of a client’s reporting requirements. The issuance of clear guidance in this area will not only reduce the confusion and burden for tax preparers but also allow taxpayers to accurately comply with IRS rules.”
The clarification requested were regarding the valuation of coins for the purposes of taxation; the treatment of the expenses incurred in obtaining or mining the coins; tracking of gains and losses during transaction involving cryptocurrency; whether property transactions rules apply to coins; whether coins held by a merchant are to be considered property or assets; the treatment of coins during donations, whether coins are regarded as commodities; whether coins can be treated as foreign currency during personal transactions; whether retirement savings accounts can hold virtual coins; and the treatment of coins for the purposes of foreign reporting requirements.
http://www.taxationinfonews.com/2016/06/irs-urged-to-give-guidance-on-bitcoins/
Explaining the need for extra guidance, Troy Lewis, the chair of the AICPA, said “Virtual currency transactions, in which taxpayers increasingly engage, add a new layer of complexity to the analysis of a client’s reporting requirements. The issuance of clear guidance in this area will not only reduce the confusion and burden for tax preparers but also allow taxpayers to accurately comply with IRS rules.”
The clarification requested were regarding the valuation of coins for the purposes of taxation; the treatment of the expenses incurred in obtaining or mining the coins; tracking of gains and losses during transaction involving cryptocurrency; whether property transactions rules apply to coins; whether coins held by a merchant are to be considered property or assets; the treatment of coins during donations, whether coins are regarded as commodities; whether coins can be treated as foreign currency during personal transactions; whether retirement savings accounts can hold virtual coins; and the treatment of coins for the purposes of foreign reporting requirements.
http://www.taxationinfonews.com/2016/06/irs-urged-to-give-guidance-on-bitcoins/
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