Blockchain Association announces Tax Reporting Working Group
The Blockchain Association is pleased to announce the launch of the Tax Reporting Working Group to lead the crypto industry’s efforts to engage with Treasury and the Internal Revenue Service (IRS) on tax reporting. Sulolit (Raj) Mukherjee, Head of Global Tax Information Reporting at Coinbase, will chair the working group.
In 2014, the IRS deemed virtual currency to be property, which means that holders and users of cryptocurrency must determine if there is a gain for each transaction. Unlike some other assets, there is currently no mandated reporting to help consumers determine their tax liability. Unclear procedure for tax reporting for virtual currency is a barrier for broader consumer and investor engagement, and the group hopes to simplify this process.
Crypto exchange members of the Blockchain Association want to work towards a system where consumers and the IRS receive better information about tax liabilities.
The Blockchain Association’s Tax Reporting Working Group will continue to work with the Department of the Treasury, the Internal Revenue Service (IRS), and Congress to advise on how best to establish a tax reporting system.