Unreported Bitcoin Income - What To Do

You may need to amend your tax returns and pay additional taxes, penalties, and interest if you have previously unreported Bitcoin income.  If you fail to take action, the IRS may audit your returns as part of its Virtual Currency Compliance campaign.

Key Insights We Will Discuss
  1.  How the IRS treats Bitcoin transactions for tax purposes
  2. What thee IRS is doing to increase virtual currency tax compliance
  3. What you should be doing to correct your past non-compliance with Bitcoin tax laws
Bitcoin Taxes 101

The IRS considers Bitcoin and other virtual currencies to be property for tax purposes.  You need to pay taxes if you receive Bitcoin income, the same way you would need to pay taxes if someone paid you for your work by giving you a new car.

The property will be valued based on the currency’s exchange rate on the date you received the income.  You can use any exchange rate listed on a public exchange as long as you consistently use the same method.

Read More