Despite their volatility, cryptocurrencies such as bitcoin and Ethereum continue to attract investors and users. To accommodate these customers, a growing number of businesses have begun accepting digital currencies as payment for their products or services. If your company is among them, it is important to understand the tax treatment of such digital assets and to stay abreast of the changing tax and reporting requirements. (more…)
Cryptocurrency Tax Update - Still More Questions Than Answers
There have been a few developments since we last looked at cryptocurrency in April, 2017 (Are Bitcoin Users Cheating on Taxes? (Or Are They Just Confounded by the Rules?)). The IRS has increased tax compliance enforcement but unfortunately, guidance from the Internal Revenue Service has not kept up with the advances in the cryptocurrency world continuing tax reporting challenges.
In 2014 the IRS released their position regarding the taxation of cryptocurrency transactions in Notice 2014-21 (https://www.irs.gov/pub/irs-drop/n-14-21.pdf). The IRS notified taxpayers that: (more…)