The federal government has made a move to ease the burden on businesses and consumers by making the sale of digital currencies a taxable transaction.
The new rule would allow consumers to pay sales tax on any transaction worth more than $10,000 in value.
The move follows the implementation of the tax on the sale and transfer of Bitcoins last year.
In December, the Internal Revenue Service (IRS) announced that it would begin issuing digital currency-related tax identification numbers.
The IRS said that the new identifier would be issued to individuals, businesses and organizations that are using digital currencies to facilitate transactions, such as exchanging money for goods and services.
A similar identifier was issued for the sale or exchange of property, including real estate, in the federal tax code.
Tax ID numbers are similar to business cards, but are issued on a digital form and can be transferred from person to person.
The tax ID number, which must be submitted to the IRS in person or online, will be used to identify an individual who has used or will use a digital currency to conduct business.
The change is expected to be finalized in 2019.
It’s unclear how many businesses will be eligible to apply for the new tax ID numbers, or what the tax will be.
The U.S. Treasury Department said that it was also working with Congress to establish a tax code that could support a digital asset-based currency.
The Treasury Department has also created a task force on digital currencies and cryptocurrencies, which has been created to develop a tax and regulatory framework for the digital currencies.
The task force is expected be formally released next year.
“Digital currencies are an increasingly important component of our financial services landscape, and they offer a unique set of opportunities for economic activity that is not available through traditional banking or securities markets,” Treasury Secretary Jack Lew said in a statement.
“Taxing digital currencies could be one way to support these innovative financial technologies, which are increasingly important for economic growth and innovation.”
The tax on digital currency transactions would apply to any transaction made using a digital or digital currency exchange, including the purchase or sale of a digital coin or digital asset.
The sale of any virtual currency on an exchange, such a virtual currency wallet, will not be considered an asset-transfer transaction under the tax code, and therefore does not require a digital ID.
However, the IRS will be required to issue digital ID numbers to individuals who sell, trade or transfer digital currencies, the Treasury Department announced.
The number will be issued for individuals, business entities and organizations, the statement said.