A new bill could ease tax reporting pressure on Bitcoin investors. Rep. Jared Polis, D-Colo., and Rep. David Schweikert, R-Ariz., introduced a bill on Thursday that would eliminate reporting requirements for cryptocurrency purchases up to $600.
Since 2014, the IRS has classified Bitcoin and other digital currencies as property. Investors who receive digital currency must report the gain in their gross income based on the fair market value of the currency at the time it was received.
Digital currency miners who receive the currency as compensation for their work may also be subject to self-employment tax.
Not that there are many investors who are actually reporting those gains. Fortune reported in March that just over 800 taxpayers filed a Bitcoin-related Form 8949 reporting property gains or losses in 2015.
Under the bill introduced on Thursday, gains from the sale or exchange of virtual currency in transactions for other than cash or cash equivalents would be excluded from gross income up to $600. The bill also proposes annual inflation adjustments equal to cost of living adjustments.
“Cryptocurrencies can be used for anything from buying a cup of coffee to paying for a car to crowdfunding a new startup, and more and more consumers are choosing to use this type of payment,” Polis, co-chair of the Congressional Blockchain Caucus with Schweikert, said in a statement. “To keep up with modern technology, we need to remove outdated restrictions on cryptocurrencies, like Bitcoin, and other methods of digital payment.”