The IRS and Bitcoin Tax Dillema
In a recent article in the National Journal the agency needs time to figure out how to best proceed on providing guidance for taxpayers.
The IRS is aware of the potential tax-compliance risks posed by virtual currencies. The IRS continues to study virtual currencies and intends to provide some guidance on the tax consequences of virtual-currency transactions.
Considering the currency is accepted now on Overstock.com and at a few Las Vegas casino/hotels it’s more and more pressing that the agency figure it out and soon. Having worked for them in the past, I can say that you have probably a decade before they actually come to a conclusion on how it’s to be treated (either as an asset, commodity, or currency).