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IRS Releases Bitcoin Tax Guidance

IRS Releases Bitcoin Tax Guidance

Earlier this week America’s Internal Revenue Service (the IRS) announced that it will be ruling Bitcoin as a property and it will be taxed in accordance to its codes on property transactions.

This means that workers who are paid in Bitcoin will be subject to federal payroll and income taxes. Furthermore the IRS will be allowing Bitcoins to be treated as capital assets and will be regulated the same way as stocks and bonds.

Senator Thomas Carper is said to be in support of the IRS’ announcement. Carper is one of the strongest supporters of regulating virtual currencies, in a statement he said that the IRS’s announced “provides clarity for taxpayers who want to ensure that they’re doing the right thing and playing by the rules when utilizing Bitcoin.”

However, the IRS’ guidance is subject to change. Tax attorneys and other experts are likely to file commentary on the IRS notice. Furthermore, the IRS guidance could eventually be replaced by regulation that could be different in its approach. However, at least for the time being Bitcoin users in America have something to go on.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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