The IRS is Due to Present its Digital Currency Strategy to Congress Next Week

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The US Congress needs solutions from the Internal Revenue Service (IRS) about its investigation into bitcoin tax avoidance – and so they’re due by subsequent week.

As beforehand reported by CoinDesk, a trio of lawmakers – Senator Orrin Hatch, Representative Kevin Brady and Representative Vern Buchanan – requested information concerning the IRS’s general technique towards digital currencies in a letter dated 17th May.

Those solutions are due by seventh June, or subsequent Wednesday. A consultant for the IRS was not instantly obtainable to remark when contacted about its plans to reply.

Notably, the three politicians took a unfavorable tack towards a main IRS investigation focusing on customers of digital currency trade Coinbase, writing within the letter:

“[W]e strongly question whether the IRS has actually established a reasonable basis to support the mass production of records for half of a million people, the vast majority of whom appear to not be conducting the volume of transactions needed to report them to the IRS. Based on the information before us, this summons seems overly broad, extremely burdensome, and highly intrusive to a large population of individuals.”

The letter represents the newest wrinkle within the months-long battle by the IRS to get hold of person information from the trade.

The tax company first went to court in November, in search of to concern a summons for entry to Coinbase’s person information. In the latest improvement, a gaggle of the startup’s prospects – who’ve requested anonymity – formally requested a US choose in California to intervene and stop the IRS effort in its tracks.

The lawmakers’ official roles additionally level to the importance of their criticism of the IRS investigation: Hatch chairs the Senate’s Finance Committee, Brady leads the House of Representatives’ Committee on Ways and Means, whereas Buchanan serves as chair of the House committee’s Oversight Subcommittee.

And others have additionally beforehand criticized the IRS method to digital currencies. Last November, the company’s personal inspector normal known as for a strategic overhaul, chastising the IRS over its present practices.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an possession stake in Coinbase.

IRS building picture by way of Shutterstock

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