A new report by the IRS has many Bitcoin users concerned right now. According to the document, there is no clear plan in place to address bitcoin taxation, should that ever become a factor. It is evident there are still a lot of misconceptions surrounding Bitcoin and the lack of coordination between different branches of the IRS is not helping matters either.
Why the IRS is Concerned About Bitcoin
With Bitcoin becoming more popular than ever, taxation of virtual currency transfers becomes a topic of debate once again. Although the IRS has been monitoring Bitcoin closely and has no real plan to tax cryptocurrency transfers, there are some concerns. For example, the IRS inspector general feels bitcoin can be used by taxpayers who want to “generate additional income hidden from tax authorities.”
Despite Bitcoin being far more transparent