IRS Provides Informal Tax Guidance on Bitcoin, Mt. Gox Advertises with G8 Summit

Federal auditors are recommending that the Internal Revenue Service not issue formal regulations for taxpayers filing returns on earnings from Internet currencies like Bitcoin, according to a report from the Government Accountability Office. The IRS would provide information on its website that links “virtual currencies” to existing guidelines on bartering, gambling and hobby income, agency officials wrote in a May 3 letter responding to a draft report.

Steven Miller, IRS deputy commissioner for services and enforcement, stated: The IRS “is aware of the potential tax compliance risks posed by off-shore and anonymous electronic payment systems, and we are working to address these risks.” The tax agency has not provided taxpayers with information on virtual currencies “because of other priorities, resource constraints, and the need to consider the use of these recently-developed currencies,” GAO officials explained.

Miller mentioned ongoing discussions with other federal agencies and that additional material addressing alternative payment systems being developed. Other regulatory agencies, such as the Financial Crimes Enforcement Network, which looks for signs of money-laundering, have also issued memoranda regarding the burgeoning market.

Browsing through G8 Summit newsletter- link provided in the prior post- it wasn’t all doom and gloom for Bitcoin, as the opening pages featured a full page advertisement for Mt. Gox.

“Come in and join us,” says a round table of the world’s currencies to Bitcoin. However, Bitcoin may not have gotten so warm a reception at the 2-day summit which ended June 18th. Nonetheless, the ad is a reminder that Bitcoin has gotten a foothold with mainstream companies, venture capital-backed startups, and the wider public. Mt. Gox put similar ads on Facebook, which also linked to its special intro page for new users.

While the G8 Summit has just concluded, Bitcoin London, July 2nd, is hot on the heels of the Bitcoin 2013 Conference in San Jose in May, while other conferences around the world are drawing new audiences as they address the Bitcoin topic.

The GAO report can be found at: http://globalforumljd.org/events/2013/061413_currencies.htm.
Bitcoin Conferences at: http://btclondon.com, and http://www.bitcoin2013.com/.

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2 Responses to “IRS Provides Informal Tax Guidance on Bitcoin, Mt. Gox Advertises with G8 Summit”

  • Saeid:

    I was at the first Bitcoin meetup in Sydney last night. The crowd out there were so passionate I think they alone can change the world and move it towards Bitcoin.
    Governments won’t regulate Bitcoin, Bitcoin will regulate governments :)

    [Reply]

    enivid Reply:

    Agreed. Even if it is not the current “Bitcoin”, it will be some system based on the principles of BTC.

    [Reply]

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