US treasury - Virtual Currencies

Here you’ll find important information from the US Treasury regarding the taxable transactions of virtual currencies. This report was finalized on September 21, 2016 and may not be the most updated document so please ensure you are reading the most recent documents pertaining this information. We all know information and legislation regarding cryptocurrencies can change rapidly, thus making the most recent and up to date information completely invaluable.

TIGTA = Treasury Inspector General for Tax Administration
In this report you will find:
• Impact on Taxpayers
• Why TIGTA did the audit
• What TIGTA found
• What TIGTA recommended
A full report of the results found when evaluating the IRS (Internal Revenue Service) strategy for addressing the income produced through virtual currencies.

The report also contains major issues and challenges facing the IRS when creating compliance initiatives.

You’ll find in this report how the US government defines bitcoin and cryptocurrencies as well as their stance on using them as an investment and currency.

With all of this said, if you are not a US resident who has income from virtual currencies or a tax professional who has clients involved in cryptocurrencies, you probably have no reason to read this other than a general interest in taxes.

Overall, it’s exactly what you would expect a government report to consist of and does not easily define how taxes are conducted in regard to cryptocurrencies.