Virtual currencies are not currently accepted as the legal tender or “fiat” currency of any country. In the United States, the IRS has stated its view that convertible virtual currency is property, subject to the general tax rules that apply to property, and is not foreign currency. As such, virtual currency does not qualify for the special tax rules available to foreign currency transactions. This article explores the major consequences of this rule on taxpayers.
What Is the Significance of Virtual Currency Not Being Taxed as Currency?
By McDermott Will & Emery on August 14, 2020
Posted In IRS Guidance, Tax Reform