,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #cbgc  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #ag1 #bjba,mr4   
,emm] 7= himself & ,mr4 ,soto7 introduc$
 ! foll[+ bill2 :i* 0 ref]r$ to !       
,committee on ,ways & ,means  ,a ,,bill 
,to provide = ! tax treatm5t ( =k$      
conv]tible virtual curr5cy4  #a4 ,%ort  
title ,?is ,act may be cit$ z ! ,safe   
,h>bor = ,taxpay]s ) ,=k$ ,assets ,act (
 #bjba4  #b4 ,tax treatm5t ( =k$        
conv]tible virtual curr5cy  7a7         
,exclusion f gross income ,"p ,,iii (   
sub*apt] ,b ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #aci;,h ! foll[+ new      
section3  #aci;,i4 ,exclusion (         
conv]tible virtual curr5cy receiv$ 9 a  
h>d =k  7a7 ,9 g5]al ,no am\nt %all be  
includ$ 9 gross income by reason ( !    
receipt ( any =k$ conv]tible virtual    
curr5cy4  7b7 ,=k$ conv]tible virtual   
curr5cy ,= purposes ( ?is section-- 7#a7
 ,=k$ conv]tible virtual curr5cy ,! t]m 
=k$ conv]tible virtual curr5cy means1 ) 

respect to any taxpay]1 any conv]tible  
virtual curr5cy to :i* ! taxpay] becomes
 entitl$ by reason ( a h>d =k4  7#b7    
,conv]tible virtual curr5cy ,! t]m      
conv]tible virtual curr5cy means any    
digital repres5tation ( value t-- 7,a7  
functions z a m$ium ( ex*ange1 a unit ( 
acc\nt1 or a /ore ( value2  7,b7 does n 
h legal t5d] /atus2 &  7,c7 has an      
asc]ta9able equival5t value 9 legal t5d]
 or is us$ z a sub/itute = legal t5d]4  
7#c7 ,h>d =k ,! t]m h>d =k means1 )     
respect to any conv]tible virtual       
curr5cy1 any mat]ial *ange 9 ! %>$      
digital l$g] :i* is us$ to v]ify by     
cons5sus transactions 9 su* curr5cy if  
su* *ange results 9 ! ma9t5ance (       
indep5d5t %>$ digital l$g]s ) respect to
 su* curr5cy4  7#d7 ,con/ructive receipt
 ,receiv+ =k$ virtual curr5cy %all      
include any "r to receive 7or o!r       
con/ructive (7 su* virtual curr5cy4  4  
7b7 ,safe h>bor p]iod = p5alties relat+ 
to tax treatm5t ( h>d-,=k$ virtual      
curr5cy  7#a7 ,9 g5]al ,9 ! case ( a    

taxpay] :o dur+ ! applicable p]iod      
receives =k$ conv]tible virtual         
curr5cy-- 7,a7 no p5alties or additions 
to tax "u "p ,,ii ( sub*apt] ,a ( *apt] 
#fh ( ! ,int]nal ,rev5ue ,code ( #aihf  
%all apply ) respect to any portion ( an
 und]paym5t or und]/atem5t ( tax t is   
attributable to ! taxpay]'s attempt dur+
 su* p]iod to comply ) ! tax treatm5t "u
 su* ,code ( ! receipt ( su* virtual    
curr5cy 7or any disposition ( su*       
curr5cy dur+ su* p]iod72 &  7,b7 no     
p5alties or additions to tax "u sections
 #ffea1 #ffed1 #ffee1 #ffef1 #ffih1 &   
#ffii %all apply = any failure dur+ !   
applicable p]iod to file a return or    
report or make a paym5t ( tax to ! ext5t
 su* failure is attributable to fil+ or 
paym5t requirem5ts relat+ to ! receipt (
 su* virtual curr5cy 7or any disposition
 ( su* curr5cy dur+ su* p]iod74  7#b7   
,def9itions & special rules ,= purposes 
( ?is subsection-- 7,a7 ,applicable     
p]iod ,! t]m applicable p]iod means any 
p]iod beg9n+ be=e ! date ( ! enactm5t ( 

?is ,act & end+ on ! date ! ,secret>y   
issues regulations or guidance1 or      
legislation is enact$1 t prescribes ea* 
( ! foll[+3 7i7 ,rules = calculat+ &    
allocat+ ! basis ( =k$ conv]tible       
virtual curr5cy4  7ii7 ,rules =         
calculat+ ! fair m>ket value ( =k$      
conv]tible virtual curr5cy at any giv5  
"t4  7iii7 ,rules = det]m9+ ! hold+     
p]iod ( =k$ conv]tible virtual curr5cy4 
7,b7 ,o!r t]ms ,t]ms us$ 9 ?is          
subsection :i* are also us$ 9 section   
#aci;,i ( ! ,int]nal ,rev5ue ,code (    
#aihf %all h ! same mean+ z :5 us$ 9 su*
 section #aci;,i4  7c7 ,cl]ical am5dm5t 
,! table ( sections = "p ,,iii (        
sub*apt] ,b ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #aci;,h ! foll[+ new item3      
,sec4 #aci;,i4 ,exclusion ( conv]tible  
virtual curr5cy receiv$ 9 a h>d =k4  4  
7d7 ,effective date ,! am5dm5ts made by 
?is section %all apply to =k$ conv]tible
 virtual curr5cy 7z def9$ 9 section     
#aci;,i ( ! ,int]nal ,rev5ue ,code (    

#aihf z add$ by ?is section7 receiv$    
aft] ! date ( ! enactm5t ( ?is ,act4