AUSTIN (Texas) — Julie Foerster, who spoke at Convergence 2023 Friday, said that the U.S. Internal Revenue Service aims to release crypto tax guidance “in 12ish months”.

Foerster, who is the director of the IRS’s crypto asset project, said that the IRS plans to change the way it views cryptocurrency and wants more collaboration with the industry.

Foerster, who insisted that her views were her own, and not necessarily the IRS’s, said she had a five-person team with her. They were presumably walking through the convention centre, speaking to people about taxation and how the U.S. agency could do better.

She said, “We’re engaging with you so that we can get it right and create a plan.” Later, she added that the IRS should “look at the skills of those people we have now and those we’ll bring on in future.” “We need the right tools and people.”

The IRS currently considers cryptocurrency to be virtual assets convertible that can be used for payment of goods and services. They are also digitally traded among users and converted into other currencies.

Cryptocurrencies are not fiat currency but are treated as property for federal tax purposes. Users are therefore required to declare their digital asset activity on their tax return.

Foerster emphasized that the digital asset landscape is evolving and stressed the need for increased communication between the agency’s crypto community. She urged people in particular to comment on ‘s March proposal, which would tax non-fungible tokens (NFTs) as other collectibles. The comment period ends June 9.

Foerster said that the U.S. Tax Agency is also speaking to some of its counterparts abroad – which she did not identify – about best practices in crypto taxation.

I will tell you that countries have come to our division for international business and large business to speak to us. She said that she believes events like these and others we have attended give us a global perspective.

She said that the agency must find “other ways” to communicate its message to encourage voluntary compliance.

Margo Beller is the editor.