Bitcoin and Cryptocurrency – An Update





As I mentioned in an earlier post, I spoke last month on the Federal taxation of Bitcoin and other crypto-currencies. One of the unknowns at that point was whether the IRS would allow or respect Bitcoin investments in IRAs – that question wasn’t answered in IRS Notice 2014-21 (the Service’s initial attempt to explain virtual currency taxation). So, I wonder how the IRS will treat this new development.

As with most legal and tax issues, it usually takes an actual living and breathing example before guidance is handed down.