So you now hold cryptocurrency in your business, perhaps because you’ve decided it is an advantageous medium of exchange, or you might hope to profit from an upswing in value. Clearly, your holdings are an asset of your business, but how should you display them on your balance sheet and at what amounts? (more…)
There have been a few developments since we last looked at cryptocurrency in April, 2017 (Are Bitcoin Users Cheating on Taxes? (Or Are They Just Confounded by the Rules?)). The IRS has increased tax compliance enforcement but unfortunately, guidance from the Internal Revenue Service has not kept up with the advances in the cryptocurrency world continuing tax reporting challenges.
In 2014 the IRS released their position regarding the taxation of cryptocurrency transactions in Notice 2014-21 (https://www.irs.gov/pub/irs-drop/n-14-21.pdf). The IRS notified taxpayers that: (more…)