The Internal Revenue Service announced on Tuesday that it will categorize virtual currencies like Bitcoin as property, and not as a currency, a move that will impose significant taxes and regulations on the fledging market, but will likely be a boon for investors.
Payments made to employees and workers with virtual currency will be subject to federal income tax, and any payment made using virtual currency will now have to be reported in the same way as other payments made in property.
Doesn't the IRS have better things to do? Like prevent employees from stealing 20,000 people's personal information?
Tags: IRS, Taxes, Bitcoin