Both digital currencies and cryptocurrencies have been around for several years (Bitcoin since 2009), but only in the past couple of years has the IRS begun to really focus its enforcement on cryptocurrency transactions. So far the IRS approach has been focused on Enforcement and Punishment, rather than amnesty and voluntary prior year disclosure, a “Stick” approach (punishment) without the “Carrot” (reward). The current IRS approach presents both taxpayer risk and opportunity.
In 2014 the IRS issued Notice 2014-21 that rules virtual currencies (Cryptocurrency ...
Transacting in blockchain backed currencies like Bitcoin or Ethereum is becoming increasingly common. Over 300,000 daily transactions are occurring using Bitcoin. Add to these numbers other alternative blockchain currencies and that leads to over 500,000 unique transactions per day and rising. Another way to look at this is 6 transactions a second.
Malls now have Bitcoin ATM machines where people can purchase and exchange Bitcoins for other paper currencies or other paper currencies into Bitcoins.
The digital generation (under the age of 30) account for 65% of ...