The Internal Revenue Service announced on Tuesday that Bitcoin should be viewed and taxed as property, giving a little clarity to the shifting regulatory landscape of virtual currency.
Despite the fact that many users treat Bitcoin like a regulated currency, “it does not have legal tender status in any jurisdiction,” the agency said.
That means that employers who choose to pay wages in Bitcoins will have to report those wages just like any other payment made with property, and Bitcoin income will be subject to the normal federal income withholding and payroll taxes.
Does it matter? The IRS doesn't tax my property. Depending on your state or locality, they may tax it. The IRS taxes income and now health care. Bitcoin is as dead as Mt Gox anyway so who cares.
Two all-beef patties, special sauce, lettuce, cheese, pickles, onions – on a sesame seed bun.
Front Porch Punditry
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Tue Mar 25, 2014 4:40 pm
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Front Porch Punditry