April 2014

Steven Katz and Emily Kingston comment on recent IRS bitcoin guidance for the San Francisco Daily Journal


Recent Internal Revenue Service guidance on bitcoin threatens headaches for those who use the digital currency for buying and selling goods. Now expected to claim bitcoins as property, not currency, users will be on the hook for reporting capital gains realized through the purchase and sale of bitcoins – even if a gain resulted from buying a $2-equivalent cup of coffee. But despite initial concerns about the new reporting requirements, attorneys say bitcoin remains surprisingly robust and will likely spawn even more legal work going forward.