Co-Chair of the Congressional Blockchain Caucus, Congressman Tom Emmer (R-MN), is putting forth much needed legislation to provide clarity to tax payers regarding crypto.
Crypto traders have mostly been using fuzzy guidelines from 2014 to deal with taxes and it is somewhat of a nightmare. Any legislation that provides clear guidance is welcome, even better Emmer is suggesting clarity paired with a light touch.
Keep in mind this doesn’t mean anything has passed, it just means the legislation is going to be on the table and then subject to legislative process.
See this article from KahnTaxLaw.com for details: CONGRESS LAUNCHING BILLS TO UPDATE CRYPTO CURRENCY TAX GUIDELINES, or see the excerpt from the article below:
Mr. Emmer plans to propose the following:
- A “Resolution Supporting Digital Currencies and Blockchain Technology” which expresses support for the industry and its development in the United States. Mr. Emmer states that like the internet, the federal government should provide a light touch, consistent, and simple legal environment. Read more here.
- The “Blockchain Regulatory Certainty Act” affirming that certain blockchain related entities that never take control of consumer funds do not need to register as a money transmitter. Examples of these entities include “miners” that validate network integrity and multisignature providers that provide enhanced asset security to users. Read more here.
- The “Safe Harbor For Taxpayers With Forked Assets Act” recognizing that taxpayers can only comply with the law when the law is clear. This bill will provide a safe harbor for taxpayers with “forked” digital assets. Further it will restrict fines against individuals that attempt to report these assets until the IRS provides any type of guidance regarding the appropriate means of reporting them. Read more here.
- CONGRESS LAUNCHING BILLS TO UPDATE CRYPTO CURRENCY TAX GUIDELINES. KahnTaxLaw.com.