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US Congressmen urge IRS to provide clarity on cryptocurrency taxation laws in new joint letter

Akash Anand

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US Congressmen urge IRS to provide clarity on cryptocurrency taxation laws in new joint letter
Source: Pixabay

Government institutions in the United States of America have played a pivotal role in controlling the fate of cryptocurrencies and the digital asset market, in general. One of the main issues that lawmakers and government officials raise is the taxation on cryptocurrencies like Bitcoin [BTC] and Ethereum [ETH], which was discussed again in a recent letter signed by 21 Congressmen to the Internal Revenue Service [IRS].



The letter was written with the intention to clear any ambiguity concerning cryptocurrency taxation as well as informing cryptocurrency holders on how to assess their virtual assets. The congressmen requested the IRS to clarify three major areas that will help in alleviating the confusion surrounding the cryptocurrency industry. These topics included,

“1) Acceptable methods for calculating the cost basis of virtual currencies. Which specific methods does the IRS consider to constitute “a reasonable manner that is consistently applied,” as required by Notice 2014-21?

2) Acceptable methods of cost basis assignment and lot-relief for virtual currencies. Do taxpayers need to use specific identification whenever they spend or exchange virtual currency, or are other methods, such as first-in-first-out or average cost basis, acceptable as well?

3) The treatment of forks for taxpayers that use virtual currencies, such as the 2017 hard fork of the Bitcoin blockchain.”

In the letter, the Congressmen also requested the IRS to respond before May 15, which is exactly a month after the US Tax Day [April 15]. One of the Congressmen who signed the document was Tom Emmer, who introduced three cryptocurrency bills back in September 2018. He had then claimed that the bills were aimed at furthering the development of the burgeoning industry and that it had to be watched over in a controlled fashion. One of the multiple operative clauses in the bill stated,

“The United States should prioritize accelerating the development of blockchain technology to support transparency, security, and authentication in a way that recognizes its benefits and allows consumer protection while supporting future innovation”





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Basic Attention Token surges by over 6% as Ad Launch nears

Namrata Shukla

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Baisc Attention Token surged by over 6% over ads launch hype
Source: Pixabay

The cryptocurrency market appears to be bleeding, however, few altcoins have reported small surges over the past few days, like Basic Attention Token [BAT].

The coin, on April 18 when the entire market was mostly red, surged by over 10% and was trading at $0.3618, its all-time high since July 2018. On April 20, BAT reported a growth of over 6% and was valued at $0.3947, breaking its immediate resistance.

Source: CoinMarketCap

Source: CoinMarketCap

BAT reported a market cap of $493 million and a 24-hour trading volume of $57 million. The coin noted a 6.47% rise in its price over the past day and reported a seven-day surge of 31.20%. BAT continued to register a growth of 1.18% over the past hour.



Crypto-enthusiasts speculate the reason for the surge in prices to be the launch of advertisements on the Brave Browser this month. The BAT token is essentially based on entertainment and can be obtained through a variety of advertising and attention-based services on its platform. According to Twitter user @CryptoNilla,

“They are about to launch ads this month hence the pump.”

BAT was highly traded on ZB.COM exchange as it noted a volume of $8 million via the BAT/USDT pair. The second place was taken by Binance, the largest cryptocurrency exchange as it reported a trading volume of $7 million via the BAT/BTC pair. IDCM was on the third place with $6 million in volume via the BTA/BTC pair.





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