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IRS to invite Crypto firms to its summit next month

In preparation for its summit which will hold on the 3rd of March, the US Internal Revenue Service (IRS) has invited some cryptocurrency firms for discussion.

The purpose of this invitation is to talk about the existing techniques for taxing cryptocurrencies as well as enforcement actions.

According to an IRS representative, the summit will be held at the IRS headquarters at Washington DC.

This news is coming days after the Government Accountability Office announced that the IRS had refused to approve different recommendations to explain its new guidance.

Although a list of panelists for the summit is yet to be ascertained, the summit will comprise of four panels talking about problems encountered by exchanges, technology, regulatory adherence, among others.

Executive director of the Blockchain Association advocacy group, Kristin Smith, said the IRS has been considering arranging a summit for a while now.

She added that the IRS will use this summit opportunity to discover certain things from partakers in the crypto space and will definitely assist the IRS’s reasoning.

She said that obedience to prevailing regulation and guidance is one aspect the agency is focusing on.

Although the IRS did not say the summit will help its direction, Smith said she expects the agency to use the data and advice it collects from the summit to formulate better regulatory frameworks as regards cryptocurrency going forward.

IRS stands on Crypto as at 2019

The IRS had published new guidance around cryptocurrencies in 2019.

This was its first update in five years.

According to them, if you collect cryptocurrency through an airdrop or hard fork, whether you wanted it or not, you are compelled to pay tax on it.

The tax you owe is estimated based on the “fair market value” of the coin, not minding if it can be spent, traded or transferred.

In summary, holders will be required to pay tax on an asset that they did not ask for.


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