Accountants Ask IRS to Clarify Bitcoin Transactions’ Tax Status

Accountants Ask IRS to Clarify Bitcoin Transactions’ Tax Status

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The American Institute of CPAs has sent the IRS a letter to clarify tax status of small virtual currency transactions and nine other virtual currency issues, according to The Wall Street Journal.

A bitcoin payment for a small purchase can have an investment gain or loss on that purchase under the IRS’s existing tax treatment. This is an onerous reporting requirement.

Annette Nellen, a professor at San Jose State University, who helped draft the institute’s request, said the AICPA wants to know the tax rules before they become audit issues.

Bitcoin Usage Grows

The number of daily bitcoin transactions has increased to 240,000 from 50,000 two years ago, according to Due to this growth, the IRS has conducted audits of bitcoin holders, according to Bryan Skarlatos, a tax lawyer at Kostelanetz Fink in New York.

An IRS spokesperson declined to comment except to say the agency values

Read more ... source: TheBitcoinNews

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