Overview
Lisa Zarlenga, Elinor Ramey and John Cobb are quoted in a Law360 article titled "More Charitable Crypto Donations Spur Calls For Rule Change." The article, published January 22, discusses how the growth in digital currency values has made charitable donations of virtual currency more attractive. In turn, some are calling on the IRS to change guidance in a way that could spur more philanthropy.
According to the article, rising values may help grow a new donor class for charities to reach out to, and donations of virtual currency can deliver significant tax benefits. However, there are challenges for donors and charities, including a requirement for a qualified appraisal of donations.
The Steptoe tax trio tell Law360 that they too had heard from taxpayers who say it's difficult to find an appraiser and costly to meet the requirements. "The regulations put relatively stringent restrictions on who may act as a qualified appraiser," they say. "However, because reliable market prices exist for publicly traded cryptocurrencies, there appears to be little downside to relaxing the regulatory requirements for qualified appraisals in the case of donations of publicly traded cryptocurrencies."
The full article can be read at Law360 (subscription required).
