IRS Should Adapt to Crypto

[Hodor]

http://www.financemagnates.com/cryptocurrency/interview/the-irs-must-adapt-to-cryptocurrency-not-accuse-bitcoin-users-of-tax-avoidance/
 

Quote

 

“If the IRS wants to reduce non-compliance, two things need to happen:

1) The IRS must update its tax guidelines. The Treasury Inspector General for Tax Administration (TIGTA) proposed three recommendations revolving around new strategy, better guidance and revised third party reporting documents, to which the IRS have already agreed to implement.

2) Tax software will need to be upgraded so that any user or investor of cryptocurrency can compile a report at the end of the fiscal year, showing unrealized and realized gains and losses from their entire virtual currency portfolio.

 

 

[KarmaCoverage]

One of Bernard Lietaer's main points is that if govt/irs would accept payment of taxes in "complementary currencies" it would help improve the sustainability of monetary systems.

There was also that start up in the beginning that was focused on tax related stuff and accounting for RCL transactions. Anyone know what happened to them?

[xrpaware]

Here is a URL with some pretty good embedded links including crypto-accounting services.

http://bitcoinist.com/irs-tax-bitcoin-coinbase/

I would say that the IRS is not going to get their heads fully around this concept in any way approaching a reasonable and workable approach until the next round of Tax Law revisions come down -- and maybe not even then. But -- I have seen a number of initiatives and working groups coming out of Congress believe it or not (Both Dem and Repub). There will be tax revision ( I won't use the term reform) coming out of the next Congress -- no doubt about it.