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IRS Invites Crypto Firms to Discuss Tax Provisions

The United States’ Internal Revenue Services has invited multiple crypto companies and advocates to a summit to discuss the existing approach towards taxing incomes generated from digital assets.

First reported by Bloomberg Tax on Tuesday, the summit has been scheduled for March 3 and will include four 90-minutes panels.

Per the invitation, the tax agency wants to discuss “balance taxpayer service with regulatory enforcement.”

The discussions will revolve around four key areas – technology updates, issues for cryptocurrency exchanges, tax return preparation, and regulatory guidance and compliance.

“[Panelists] will share their views and engage with the audience, which will include IRS personnel from across the spectrum of tax administration, and individuals from other bureaus or offices within the Department of Treasury,” the invitation letter stated.

Though the IRS confirmed the summit, the names of the participating firms were not disclosed.

Clarifying crypto taxation

Imposing taxes on cryptocurrencies has always been a headache to tax agencies. Without clear regulations, the taxpayers also face difficulties in disclosing their incomes and filing returns.

The agency is also concerned about tax evasion using digital assets and last year sent letters to thousands of cryptocurrency holders who failed to disclose their earnings.

The Blockchain Association’s executive director Kristin Smith told Coindesk that the IRS was planning for such a summit with the crypto insiders since at least last month.

“My understanding of the event is this is going to be something where the IRS is going to use this as an opportunity to learn from [participants] in the ecosystem but [it] may help inform IRS’s thinking,” Smith told the crypto-focused publication.

Last autumn, the tax agency also issued guidelines clarifying the ways of calculating gains and valuing crypto assets.

The agency also issued refunds to a number of crypto users who declared their crypto holdings and paid the appropriate taxes on them, Finance Magnates reported.

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