Shapiro Says IRS Playing Catch-Up on Crypto

The IRS is updating its cryptocurrency tax guidance, responding to a market that has grown significantly since 2014. Inspired by tactics used against Swiss banks, the IRS aims to enforce compliance without extensive audits. New guidance addresses the tax implications of Bitcoin and Bitcoin Cash, raising questions about what constitutes taxable income. Crypto exchanges await clear rules from Congress, as current IRS enforcement involves legal actions like suing Coinbase for records. Despite being late, the IRS is working to provide clarity, having sent warnings to 10,000 investors about tax obligations.

What has been the IRS's response to the demand for greater clarity in cryptocurrency reporting?

How did the IRS previously handle Americans with Swiss bank accounts, and what can be inferred about their approach to cryptocurrency?

What complexities arise regarding the taxation of Bitcoin and Bitcoin Cash according to the new guidance?

What challenges do crypto exchanges face in relation to IRS guidance?

What actions has the IRS taken recently regarding cryptocurrency investors, and what issues does this raise?