U.S. Weighing Trade-Offs in Crypto Tax Reporting Rules

The U.S. is developing domestic reporting rules for the tax treatment of cryptocurrencies and debating the trade-offs different models offer, a top Treasury Department official said.

The choice is between an approach focused on risk, like the international Common Reporting Standard, or one that focuses on tax liabilities by reporting transactions, Erika Nijenhuis, senior counsel at the department’s office of tax policy, said during a virtual event Thursday.

“None of those are easy questions,” Nijenhuis said. She made the remarks at the OECD’s 2020 Global Blockchain Policy Forum.

“There are trade-offs among all of them and we are ...