Cryptocurrency

Over the last 3 years, the Internal Revenue Service has been engaged in a virtual currency compliance campaign to address tax noncompliance related to cryptocurrency use. The IRS’ efforts have included outreach to taxpayers through education, audits of taxpayers’ returns, and even criminal investigations.

If you have purchased, owned, sold, gifted, made purchases with, or used cryptocurrency in business transactions, there are certain tax issues you need to know about. Unfortunately, there are some unanswered questions and little specific guidance offered by the IRS other than in Notice 2014-21 and Revenue Ruling 2019-24.

We covered a lot of ground in parts 1 and 2 of this three-part series on cryptocurrency. You may or may not be interested in using cryptocurrency as a means of exchange, but what about trading in it, directly or in fund form? If you’re considering that possibility, know that at this point: 

In part 1 of our three-part series, we introduced cryptocurrency in general. Next, let’s explore the challenges and opportunities that exist for those hoping to earn, store and spend their bitcoin or similar cryptoassets. 

The Crypto-Possibilities

It’s hard to scan the financial headlines these days and not spot at least one call to action related to Bitcoin’s latest moves. Has all the attention given you cryptocurrency fever, or are you at least wondering what it’s all about?