Status of Digital Currency
In March 2014, the IRS delivered Notice 2014-21, which expressed that advanced cash would not be treated as money, yet rather as property. Consequently, the receipt of virtual money as installment for products or administrations should be remembered for net pay. For such purposes, the honest evaluation of the advanced cash got, as estimated in U.S. dollars on the date of receipt, is remembered for net pay. Also, advanced money that is held and afterward sold at an addition is liable to either long-or momentary capital increases charge.
John Doe Summons to Coinbase
In December 2016, the IRS gave a John Doe summons to Coinbase, viably looking for the record data for the entirety of its U.S. clients. In looking for issuance of the summons, the public authority declared that “there is a sensible reason for accepting that such gathering or class of individual has fizzled or may have neglected to consent” with the expense laws. Coinbase neglected to conform to the summons, and the IRS as of late moved to implement the summons. Prosecution is progressing and, as of this composition, has not been settled.