Will the Bitcoin Become a New Tax Evasion Tool?

more+
less-

Will the Bitcoin Become a New Tax Evasion Tool?

by Joseph M. Donegan on August 19, 2013

Bitcoins, a controversial but highly popular global digital currency, is being used by more

consumers to make several types of transactions. Although no government has

recognized the bitcoin as a legitimate currency or placed concrete value on its use, the

anonymity afforded to bitcoin users, coupled with the growing trend of bartering them for assets that carry value, has drawn attention to the currency as a potential tax evasion tool.

A recent Yahoo analysis noted that "money" is not necessarily defined by production or

recognition and distribution by a government agency. Instead, the article argued that

money is typically defined as any tool that can enable financial transactions. Under this

expanded definition, the ubiquitous bitcoin may qualify, namely because it has and

continues to be used to transact real property, foreign currencies, barter, and financial

instruments. Whether this argument will hold up in a legal atmosphere is still

undetermined, but federal authorities - including the Internal Revenue Service - are

weighing these arguments carefully.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Joseph Donegan, Scarinci Hollenbeck | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×
×