Miller Participates in Ways and Means Hearing on Taxation of Digital Assets

Washington, D.C. - Yesterday, Congresswoman Carol Miller (R-WV) joined her colleagues on the House Ways and Means Committee for a hearing on a series of digital asset taxation bills. The hearing provided Members the opportunity to examine the digital asset ecosystem and assess how tax policy will shape this emerging class of investments.

A video and transcript of Congresswoman Miller's questions and the provided responses can be found below.

Congresswoman Miller began her remarks by stressing the urgent need for tax clarity in the rapidly growing digital asset market, warning that continued ambiguity could push innovation offshore, disadvantage American taxpayers, and discourage good-faith compliance among those seeking to correct past mistakes. She then questioned the Director of Policy at Coin Center, Mr. Jason Somensatto, on whether taxpayers would truly benefit from forthcoming programs given the ongoing lack of clarity and transparency in the digital asset space.

"I do want to thank Chairman Smith for calling this legislative hearing and I want to thank you all for being here to discuss the important issues.

The digital asset market has grown rapidly over the last several years and we are at a crucial moment where tax clarity is needed to ensure the United States remains the crypto capital of the world.

Without a clear administrable tax code, digital assets will be pushed offshore and give advantages to foreign adversaries and weaken our financial stability.

As the digital asset market continues to grow, more and more taxpayers have entered this space.

However, due to confusion, ambiguity, and a lack of clarity, as highlighted today, some digital asset owners may have underpaid tax due.

These taxpayers may be afraid to come forward and report their mistakes, fearing that the IRS may impose harsh penalties on what was otherwise well-intentioned activity or maybe even regret those less well-intentioned activities. They're coming forward and willing to pay what their due is to start having a clean slate.

That is why the Digital Assets Voluntary Disclosure Program Act would direct the Treasury to provide a voluntary disclosure program for taxpayers who failed to comply with tax law related to digital assets to come back into compliance, as well as providing reduced penalties and a clean slate in the process.

Mr. Somensatto, do you think that taxpayers could benefit from a program like this given the lack of clarity regarding the taxation of digital assets in recent years?" asked Congresswoman Miller.

"Yes, Congresswoman. I think crypto tax has evolved over the years through notices and FAQs and enforcement actions.

And so going to the gentleman's questions earlier, it puts the individual taxpayer in a very difficult position of people who are already engaging in this technology and want to engage in it.

I think from the perspective of trying to bring the clarity that people are talking about here today, and provide that framework that will allow people to proceed forward, it necessarily needs to come with an understanding of what the last decade plus has looked like for a lot of individual taxpayers.

I think that voluntary disclosure program is really important. I guess I would even add to it, and this is not necessarily part of the bill, but the opposite is true too, for those of us who are nervous about the tax consequences of what we do, I'm sure there's tons of us who have put everything at a zero basis because we have no idea really what we're looking at or when we're going to potentially.

Creating that level playing field for everybody and also allowing the consequences, understanding the nature of the consequences from before, a period where Congress has been clear about what it wants is really important," answered Mr. Somensatto.

Congresswoman Carol Miller closed her remarks by expressing her eagerness to continue working in this space and reaffirming her commitment to ensuring the United States maintains its global leadership and dominance in digital assets.

"Thank you. It is clear that the status quo is burdensome and confusing for the digital asset industry and without legislation the problems will only continue.

I am looking forward to continuing to work on these issues with my colleagues to ensure tax clarity and parity allow the United States to remain the global leader. But we all will have a lot of questions moving forward. Thank you, I yield back my time," said Congresswoman Miller.

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