The IRS has issued its first official guidance on how bitcoin and other digital currencies that are convertible into dollars or other real currencies on exchanges should be treated for tax purposes. The upshot is that, no matter what bitcoin’s creators and promoters may say, as far as the IRS is concerned, bitcoin is not money or currency. The IRS will treat bitcoin holdings much like corporate stock or other property (IRS Notice 2014-21). Bitcoin are created by a digital “mining” process and is not backed or regulated by any government, central bank or other legal entity. Some claim this makes bitcoin safer than traditional currency because its value can't be manipulated by central banks or governments. Bitcoin can also be directly transferred anonymously across the Interne...
Mar 20, 2014 by Teke Wiggin
Feb 28, 2014 by Inman