American Institute of CPA Seeks Clarification on Bitcoin Taxes from IRS

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Should Bitcoin be taxable? The question is a ticking time bomb, worthy of a fiery debate. Most people in the bitcoin community believe that the digital currency should not be taxable, as the founder(s) had originally intended. Bitcoin was created as an alternative currency that can be used for peer to peer transfer without the interference of external entities. The decentralized nature of the digital currency made sure of it.

However, as the popularity of the digital currency increases, the governments have come to realize the true potential of bitcoin as an alternative economic system that jeopardizes the existing financial ecosystem as we know it. The governments rely upon the taxes paid by the citizens for its functioning. While there is no escape from taxes in a traditional monetary system, the use of bitcoin among people has led to few governments imposing taxes on bitcoin as well.

The United States of America is probably the first country to come up with complicated taxation regime that makes bitcoin taxable. While the Internal Revenue Service, the US taxation agency classified bitcoin as an asset back in April 2014 and since then the regulations haven’t been updated, creating a lot of confusion among the bitcoin

Read more ... source: NewsBTC USA

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