Carper Reacts to National Taxpayer Advocate’s Call for IRS to Provide Clarity for Tax Rules for Bitcoin

Chairman Urges IRS to Move Quickly and Thoughtfully to Provide Americans with Clear Rules of the Road for Digital Currencies

Washington, DC – Today Senator Tom Carper (D-DE), Chairman of the Homeland Security and Governmental Affairs Committee and a member of the Senate Finance Committee, issued the following statement reacting to Nina Olson, the National Taxpayer Advocate’s annual report to Congress:

“I couldn’t agree more with Nina Olson’s call for the Internal Revenue Service to issue clear rules for taxpayers on how to handle transactions involving Bitcoin and other digital currencies. Bitcoin has been around for more than five years now, and individuals and businesses in the U.S. and around the world are increasingly relying on this and other digital currencies to buy and sell goods and services.  I believe that the vast majority of these consumers want to play by the rules and do the right thing when it comes to complying with federal tax law as it pertains to digital currencies, but they can’t do that until the Internal Revenue Service does its job and issues the rules of the road that all must abide by. We live in an increasingly technology-dependent world, which impacts every aspect of our lives, including how we conduct commerce and pay our taxes.  Our government has to recognize this reality and adapt accordingly.  We can’t afford to be behind the curve here. We have a saying in Delaware, the First State, that ‘it’s good to be first’ and I think that’s a mantra to keep in mind here. Other nations around the world are also grappling with these questions surrounding digital currency and it’s important for the U.S. continue to demonstrate leadership and forward thinking. I am hopeful that the new Internal Revenue Service Commissioner, John Koskinen, takes these recommendations to heart and acts expeditiously to provide thoughtful guidance to taxpayers regarding the use of digital currencies.”

Chairman Carper’s Committee on Homeland Security and Governmental Affairs held the first Congressional hearing on Bitcoin and digital currencies on November 18, 2013.