Regulatory Series on Cryptocurrencies: US taxation guidance from IRS and token taxonomy

In the recent times, the pioneer cryptocurrency (Bitcoin) and its counterparts sensed eye-catchy market-capitalization growth amid topsy-turvy trend, that puzzles quite a few investors and their CPAs struggling with uncertainties (as deadline nears, April 15thfor filing taxes in the United States) and surprises during tax season owing to many reasons (predominantly, lack of clarity in the regulatory framework). 

Some returns were given the extension, awaiting further guidance from the IRS, while other taxpayers found themselves faced with an unexpectedly large tax bill as a result of misconceptions surrounding how these transactions are taxed.

Amid these movements, the Cryptocurrency-targeted tax software CryptoTrader.Tax has integrated with leading American tax-software Intuit TurboTax.

The integration will purportedly allow users to export tax calculations from CryptoTrader.Tax to the TurboTax filing software, which will supposedly make the filing process easier. 

TheRepresentatives in the United States House of Representatives have reinforced the Token Taxonomy Act. The bill would exclude cryptocurrency from being classified as a security.

The bill was initially proposed last December by Reps. Warren Davidson (R) and Darren Soto (D), and seeks to exclude digital currencies from being defined as securities by amending the Securities Act of 1933 and the Securities Act of 1934.

While CryptoTrader.Tax co-founder David Kemmerer said:

“You simply import your cryptocurrency trades into the platform using the technology we have built. The software will automatically crunch your capital gains and losses numbers and generate the necessary tax documents including the IRS form 8949.”

The Internal Revenue Service (IRS) is the agency entrusted for tax collections and interrogating tax evaders, as the cryptocurrencies are to be treated as the assets tax computation. 

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 121 levels (which is highly bullish), USD is at -117 (highly bearish) while articulating (at 07:09 GMT). 

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