IRS to Shake Up Taxes on Virtual Currencies such as Bitcoin, Changes Imminent
The US Internal Revenue Services, IRS, has agreed to three key recommendations made by the US Treasury Inspector General for Tax Administration (TIGTA), which may introduce changes to virtual currencies such as Bitcoin. The currencies are presently used for tax purposes, especially by businesses in the US, according to a newly released tax review report. The TIGTA now views virtual currencies - especially Bitcoin which it says controls 82 percent of the entire virtual currency market - as allowing taxpayers to pay for goods and services in the same way as traditional currencies. The review....
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The European Union introduced legislation in November 2014 that implemented a new Value Added Tax (VAT) to virtual purchases. The legislation took effect on January 1, 2015. It is designed to reduce the ability of companies to avoid taxes, especially large companies such as Amazon.com. Instead of taxing an item based on the country where it was manufactured, or to the location of corporate headquarters, the item is taxed based on the country where the buyer is located, such as in the United States. Rumors on Reddit suggest that anonymity is under attack, and that even Bitcoin itself may be....
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In an effort to warn the public about the risks associated with virtual currencies, USA.gov published a list of Five Things You Should Know About Virtual Currencies. The article aims to simplify what virtual currencies are all about and why people should think about the risks involved before choosing to invest in it. It defines virtual currencies as a digital form of money that can be used for purchasing goods and services typically online and can also be exchanged for other currencies such as the U. S. dollar. Risks of Virtual Currencies. The article also warned that these types of....