An article written by Richard P. Breed, IV covering the treatment of virtual currency transactions by the Internal Revenue Service (IRS) has been published in the Summer 2020 edition of the Boston Bar Journal, the peer reviewed publication of the Boston Bar Association. The article, entitled “IRS Focus on Tax Reporting of Virtual Currency Transactions,” covers the tax guidance recently updated by the IRS for reporting transactions using cryptocurrencies such as Bitcoin or Ethereum. Such transactions will be treated as “sales or exchanges of property that trigger gain or loss for income tax purposes.”
Breed also writes that, “It is abundantly clear… that the IRS is focused on increasing compliance in reporting taxable transactions involving virtual currency, and that taxpayers need to be aware of this.
You can read the full article on the Boston Bar Association website at: https://bostonbarjournal.com/2020/08/17/irs-focus-on-tax-reporting-of-virtual-currency-transactions/