U.S. Senate Finance Committee Asks Crypto Industry for Tax Guidance

The U.S. Senate Committee on Finance sought the help of the cryptocurrency industry to better understand how Congress can address the tax challenges and opportunities presented by digital assets.

In a letter made public on Tuesday, Chairman Ron Wyden and Ranking Member Mike Crapo posed a series of questions around nine subjects including loans of digital assets, wash sales and staking and mining.

"In recent months, the Committee on Finance initiated a bipartisan effort to identify key questions that lie at the intersection of digital assets and tax law," the letter said. "The Internal Revenue Code of 1986, as amended (IRC), draws distinctions between types of property, with no straightforward classification for digital assets. This uncertainty creates complex reporting issues for taxpayers ..."

The Committee will collect answers until Sept. 8, 2023.

Last month, House lawmakers urged the Internal Revenue Service (IRS) to promptly release planned crypto tax rules so the industry can be brought into full compliance. In April, an IRS official said the agency hoped to implement a new operating plan for dealing with cryptocurrencies in the next "12-ish" months.

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