The IRS Releases Updated Guidance on Virtual Currencies in US

The US Internal Revenue Service has issued a statement undertaking to issue additional guidance on what was previously called as being vague regarding the reporting of virtual currency transactions. The new release will expand on old guidance from 2014 which classes virtual currencies as property for federal tax purposes.

Additionally, a set of FAQs address virtual currency transactions for those who hold virtual currency as a capital asset. The agency says that virtual currency transactions are notoriously not being properly reported or consequently taxed. They have started sending the educational letters to over 10,000 taxpayers in the US who may be liable for taxation, fines, any accrued interest, and even criminal proceedings against them.