The US Internal Revenue Service issued IRS Notice 2014-21 to answers questions concerning the treatment of virtual currency, such as bit coin. The information included in the notice covers the U.S. federal tax implications of transactions in, or transactions that use, virtual currency. The following provides an overview of the notice.
- Virtual currency is treated as property for federal tax purposes
- Virtual currency is not treated as currency in terms of foreign currency gains or losses
- Taxpayer…