The IRS and Crypto Stakeholders at Loggerheads Over the New IRS Guidelines

The IRS and Crypto Stakeholders at Loggerheads Over the New IRS Guidelines

 

Last Updated on October 10, 2019

Since 2014, the IRS (Internal Revenue Service) has kept the cryptocurrency market flowing without interactions or interruptions with rules and guidelines.

But the board has flexed its muscles once again. It seemed many in the industry are not happy with the new guideline.

The new tax guideline on the hard fork will possibly put those who own cryptocurrency in a bit of tax predicament.

The keenly anticipated tax guideline on crypto was released recently. However, the technicalities involved and its compliance have left many with more questions than answers.

The tax guideline stated that a hard fork would henceforth be taxable if a holder receives the forked cryptocurrency.

In this case, the coin’s “fair value” will be used in determining the tax liabilities in the market when the fork was received.However, if the crypto wallets of the original holders of the cryptocurrency are not credited with new coins, the hard fork will not be taxable.Pundits and industry stakeholders are still skeptical about how this new guideline will affect the overall mood in the cryptocurrency market. How will the new Guideline affect the market? The IRS introduced the guideline in the form of lengthy FAQ documents. It provided additional details on the practical application of the use of Bitcoin and other digital assets.In the past, there was no clearly defined rule regarding whether the digital currency should be taxed just like other property.But this has been clearly defined now. This, according to Katya Fisher, will no longer be confusing again. […]