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Congressmen asked the us Tax service to clarify questions about token giveaways

Congressmen asked the us Tax service to clarify questions about token giveaways

Eight members of the House of representatives of the US Congress appealed to the Tax service (IRS) with a request to expand the recommendations for paying taxes on token giveaways and cryptocurrency forks.

“In April, we already requested a guide on paying taxes on cryptocurrency income, and we are very happy that you have released such a guide that clarifies many issues. But we are also concerned that this guide raises new issues that need to be addressed. We are talking about token giveaways and cryptocurrency forks. This is especially sad in view of the past years after the Bitcoin Cash fork and three years after the Ethereum fork,” the letter says.

The congressmen stressed that the current rules “create potentially unjustified tax obligations for users of new, important technologies and lead to unfairness.”

“We hope that the IRS will recognize this area as new and evolving, and provide clear rules when the new guidance is released. We thank the Agency for issuing the current version and offer closer cooperation with the industry in the future,” the lawmakers noted.

In their letter, the congressmen asked whether the IRS plans to allocate token distributions to a separate segment and when this will be done, as well as how to deal with cryptocurrency forks, the cost of which may differ significantly from the value of the underlying asset.

In addition, in November, it became known that the IRS is concerned about potential problems that are carried by cryptocurrency kiosks and cryptomats.