Global Daily Tax News, US Seeks Experts' Advice On New Cryptoasset Tax Initiatives, (Feb 29, 2024)

The US Internal Revenue Service has announced the appointment of two private-sector experts to advise on the agency's response to tax issues surrounding digital assets.

They will help lead IRS efforts building service, reporting, compliance, and enforcement programs focused on digital assets.

A digital asset is a digital representation of value that is recorded on a cryptographically secured, distributed ledger or any similar technology. Common digital assets include convertible virtual currency and cryptocurrency; stablecoins; and non-fungible tokens (NFTs).

A disclosure regarding ownership of digital assets is required in forms 1040, 1040-SR, 1040-NR, 1041, 1065, 1120, 1120, and 1120S.

"This is a complex and evolving sector that has major tax administration implications," said IRS Commissioner Danny Werfel. "It's important we get this right for taxpayers and the nation. Pulling in expertise from the private sector to work with the IRS team is critical to successfully building the agency's efforts involving digital assets and helping us do it in a way that works well for everyone."

The agency said: "Expanded work on digital assets is one of the priority areas where the IRS will focus, including work through the John Doe summons effort and the release of proposed regulations of broker reporting in August 2023."