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AUSTIN, Texas - Speaking at Consensus 2023 on Friday, Julie Foerster announced that the US Internal Revenue Service aims to release crypto tax guidance within the next "12-ish months".

Additionally, the director of the digital assets project shared that the IRS is exploring new perspectives on cryptocurrency and aims to enhance its collaboration with the industry.

Julie Foerster made it clear that her personal viewpoints do not necessarily reflect those of the IRS. However, she did mention that her team of five members joined her at Consensus to interact with the audience, discuss tax-related issues, and explore ways in which the agency can enhance its services.

"We are engaging with you all so we get it right and build a plan," she said. She later added the IRS "needs to look at the skills of the people we have today and those we will bring on in the future. ... We need to have the right tools and the right people."

At present, the IRS categorizes cryptocurrencies as convertible virtual assets that possess the ability to be utilized as payment for goods and services, traded digitally between users, and exchanged for various currencies.

Cryptocurrencies are not classified as fiat currency, but they are considered property for the purpose of federal taxes. Therefore, individuals are obligated to declare their digital asset transactions on their tax returns.

Foerster underscored the fact that the digital assets sector is constantly evolving, and stressed the importance of fostering better communication between the regulatory agency and the crypto community. Specifically, she encouraged individuals to provide feedback on the proposed taxation of non-fungible tokens (NFTs) as collectibles, with the comment period ending on June 9th.

In addition, Foerster mentioned that the US tax authority is currently engaged in discussions with certain foreign agencies (although she did not disclose which ones) to explore and learn from best practices in the area of cryptocurrency taxation.

“I will say that we have had countries come in and want to talk to us and in our large business and international division. Events like this and other events that we've attended also are providing us an insight or perspective internationally,” she said.

In the end, however, she said the agency has to find "other ways to get our message across to assist in voluntary compliance."

Source Coindesk