Federal Tax

Identifying Taxpayers With Virtual Currency

Identifying taxpayers with virtual currency transactions isn’t easy for the IRS, said a key report. A recent Treasury Inspector General for Tax Administration (TIGTA) report showed that this is a growing form of alternative payment in the U.S., yet only a small number of audits that focus on such transactions have been initiated. The primary issue is a lack of reporting of virtual currency transactions by third parties. To close that information gap, TIGTA recommended that the IRS create guidance on the proper reporting of virtual currency transactions. The IRS stated that it’s currently working with the Treasury Dept. to develop this guidance. Here’s the report. For questions, contact Cg. © 2020