The Biden Administration has proposed to require virtual currency transactions of more than $10,000 to be reported to the IRS. The proposal notes that “cryptocurrency transactions are likely to rise in importance in the next decade, especially in the presence of a broad-based financial account reporting regime.”

Meanwhile, Congressman Tom Emmer (R) introduced “Safe Harbor for Taxpayers with Forked Assets Act of 2021,” a bill that, if enacted, would prohibit “penalties against taxpayers attempting to report certain gains or losses on “forked assets” until the IRS issues sufficient guidance on how to do so.”  As we previously reported here and here, current IRS guidance treats the receipt of virtual currency in connection with a hard fork as a taxable event; however, Emmer has argued that the current guidance is insufficient.