TechFlow reports that Julie Foerster, the IRS's lead on cryptocurrency taxation, said the agency hopes to issue crypto tax guidance "within 12 months." She also stated that the IRS plans to shift its perspective on cryptocurrencies and aims to foster greater collaboration with the industry.
Currently, the IRS defines cryptocurrency as convertible virtual currency that can serve as a medium of exchange for goods and services, be digitally transferred between users, and exchanged for other currencies. While not recognized as legal tender, for federal tax purposes crypto is treated as property, meaning taxpayers must report their digital asset activities on tax returns.
Foerster emphasized that digital assets are evolving and underscored the need for improved communication between the IRS and the crypto community. She specifically encouraged public comments on a proposed rule issued in March regarding NFT taxation, with the comment period set to close on June 9.
