Alan Smithee

The IRS and Bitcoin Tax Dillema

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If you’re a Bitcoin owner and you want to pay your proper taxes on any virtual currency that you may own…you might just have to wait until the IRS can pull its head out and figure out just how they will do so.

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).

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