Congress asked IRS to clarify guidance on cryptocurrency taxation

posted 7 months ago
8 members of Congress asked the IRS to clarify its position on cryptocurrency taxation. The main issue appears to be airdrops or forks, which can grant new tokens or coins to current holders of various digital assets, and a taxpayer may be required to pay taxes on funds that they are unaware they even own. Airdrops and forks can move funds into an investor’s account without their knowledge.

Congress asked that the IRS provide clarity on the meaning of “dominion and control” in relation to these funds. And, will these types of events require taxpayers to pay on previous airdrop and fork events? Lastly, if a taxpayer makes good faith efforts toward paying taxes, changes in guidance on payment should not trigger tax penalties.
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