Share this article

Emmer, Congressional Blockchain Group Ask IRS to Revise Guidance on Charitable Crypto Donations

The lawmakers say the amount of a donation should depend on free market value, not an appraiser’s determination.

Updated Sep 14, 2021, 1:10 p.m. Published Jun 11, 2021, 5:52 a.m.
Rep. Tom Emmer
Rep. Tom Emmer

U.S. Rep. Tom Emmer (R-Minn) and a bipartisan group from the House Blockchain Caucus want IRS Commissioner Charles Rettig to change the federal agency’s guidance on how it considers charitable, cryptocurrency donations of more than $5,000, according to a letter sent Thursday.

STORY CONTINUES BELOW
Не пропустіть жодної історії.Підпишіться на розсилку State of Crypto вже сьогодні. Переглянути всі розсилки

The Internal Revenue Service currently requires taxpayers to have an IRS appraiser determine the value of their cryptocurrency donations. That differs from the IRS’ guidance on cryptocurrency purchases and sales, which allows taxpayers to calculate their obligations based on free market value.

The Blockchain Caucus’ chairs, Emmer, Darren Soto (D-Fla.), David Schweikert (R-Ariz.) and Bill Foster (D-Ill.), and Caucus members Ted Budd (R-N.C.), Ro Khanna (D-Calif.) and Josh Gottheimer (D-N.J.) signed the letter, which asked Rettig to amend the tax code’s Form 8283, the Noncash Charitable Contributions Form, to allow fair market evaluation for crypto donations.

Реклама

“I urge the IRS to simplify this unnecessarily, and potentially unintended, complex reporting requirement for cryptocurrency, Emmer wrote, noting that cryptocurrency prices are easy to access via an “exchange or index prices.”

Read more: US Lawmaker Reintroduces Bill Seeking ‘Safe Harbor’ for Some Crypto Startups

Emmer has been after the IRS to improve its guidance. Last month, he reintroduced legislation that would protect taxpayers from penalties on certain gains or losses on forked assets.

Emmer called the latest IRS guidance in 2019 punitive to investors and “not pragmatic.”

Більше для вас

Fintech and Crypto Firms Seek Bank Charters Under Trump Administration: Reuters

Goldman sees only two Fed rate cuts in 2025, BOfA sees extended Fed pause. (JamesQube/Pixabay)

Financial technology and crypto firms are increasingly applying for state or national bank charters, despite the community’s historical resistance to centralized banking.

Що варто знати:

  • Fintech and crypto firms are increasingly applying for bank charters, anticipating a more favorable regulatory landscape.
  • Becoming a bank allows firms to accept deposits and lower borrowing costs but brings stricter oversight.
  • Regulatory bodies have historically approved few new bank charters, though recent signals suggest a more streamlined process.