The U.S. government will treat Bitcoin as property for tax purposes, applying rules it uses to govern stocks and barter transactions, the Internal Revenue Service said in its first substantive ruling on the issue.
Micah Andrews opened his first notice from the Internal Revenue Service a week before Christmas in 2010. He was standing in the kitchen of the house in the Atlanta suburbs that he and his wife had bought to make space for their new baby.
The U.S. Internal Revenue Service should give taxpayers clear rules on how it will handle transactions involving Bitcoin and other digital currencies, Nina Olson, the National Taxpayer Advocate, said today.
Lenders are poised to win concessions from central bank chiefs and global regulators over a debt limit they criticized as a blunt instrument that would penalize low-risk activities and curtail lending.
Congress should allow “apology payments” of as much as $1,000 to tax-exempt groups and other taxpayers who incur significant expenses or burdens because of the agency’s failures, said Nina Olson, the national taxpayer advocate.
While a Texas Senate candidate is accepting Bitcoin campaign donations, and Overstock.com customers can use the technology to buy engagement rings, Wall Street sees its future more as a payment system than a currency.
The U.S. tax system’s most serious problem is the 4-million-word code’s excessive complexity that makes it tough for taxpayers to comply with and difficult for the government to administer, National Taxpayer Advocate Nina Olson wrote in an annual report to Congress.
Criminal tax evaders have an easier time coming clean with the Internal Revenue Service than those who didn’t intend to hide money from U.S. authorities, according to Nina Olson, the National Taxpayer Advocate.