IRS Rejects Request to Clarify Crypto Foreign Reporting Rules

The IRS rejected a government watchdog’s recommendation to clarify how foreign asset reporting laws apply to virtual currency, saying such action would be premature.

The U.S. Government Accountability Office in a report released Wednesday said clarifying how foreign reporting requirements apply to virtual currencies, such as Bitcoin and Ether, “could improve the data available for tax enforcement and make it less likely that taxpayers will file reports that are not legally required.”

The Foreign Account Tax Compliance Act requires certain U.S. taxpayers holding financial assets outside the U.S. to report the assets to the IRS. The agency in a ...