That's big news for Bitcoin, the independent, electronic money that is growing in popularity.It's not a blessing or a curse by the U.S.government -- but it is a sign that authorities are taking the digital money more seriously.On Tuesday, the IRS notice said payments worth at least $600 and made with bitcoins will be taxed the same way the agency treats property transactions.That includes payments made with bitcoins, gains realized by investing in it, and income derived from producing them on your computer, a process known as "mining."If you pay your employees with bitcoins, that would have to go on your staff's W-2 forms, and they would have to pay federal income tax on it.Paying an independent contractor?They have to put bitcoin payments on their 1099."A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property," the IRS said.Related: What is Bitcoin?So, while it's not a "currency" in the legal sense of the word, it is still a virtual currency.

The IRS admits Bitcoin and other electronic tokens sure function like a real currency.But the agency holds back from applying that sort of definition because "but it does not have legal tender status in any jurisdiction."Though bitcoins are virtual, you can buy real things with them -- and others are willing to pay for them.But they're not backed by gold or issued by any government.Still many governments are attempting to regulate bitcoins, including the United Kingdom, Germany, and Singapore.bitcoin calculator definitionThe IRS' notice serves as one of the first attempts by the U.S.bitcoin join mining poolgovernment to regulate the digital money.free bitcoin rollerThe IRS notice says bitcoins must be valued at their "fair market value" at the time you acquire it.ethereum million dollars

That's a bit tricky, because the price of a bitcoin changes all day long.On Tuesday, it hovered at $580.But it's been as high as $600 and as low as $550 in the last week alone.The IRS said taxpayers may rely on the going prices at online exchanges.The largest in the world right now are Bitstamp, Bitfinex and BTC-E.The United States Government seems to be undecided about the status of bitcoin in the country.ethereum coinbase walletIn what seems like a conflict between different departments, every department directly or indirectly related to banking and finance are calling it their own.bitcoin poker two plus twoThis has caused enough confusion among bitcoin and digital currency companies operating in the country.mit bitcoin verdienenRecently the United States Commodities Futures Trading Commission (CFTC) had filed a case against one of the San Francisco based Bitcoin trading platforms.buy bitcoin with sms or telephone line

Coinflip was taken to task for not having proper regulatory clearances from the department to run its trading operations on Derivabit, its trading platform.The charges were dropped after the company and its CEO, Francisco Riordan reached a settlement with the CFTC.According to reports, the settlement didn’t include any monetary penalties as he neither confirmed nor denied any misdoings on Coinflip’s part.bitcoin orange countyWith the recent crackdown, CFTC has sent a clear message to everyone watching that Bitcoin is now considered as a commodity and anyone interested in running a bitcoin trading platform would have to go through them (just like they have to go through three more different departments).While CFTC calls bitcoin a commodity, other departments like Internal Revenue Services (IRS), Securities Exchange Commission (SEC) and Financial Crimes Enforcement Network (FinCEN) are not far behind.Each of the different organizations classifies bitcoin as property, money and currency respectively.

This kind of classification can throw anyone off balance, mostly by wondering how one thing can be everything the financial world could have ever thought of, especially when it is supposed to be decentralized, secure and transparent.Of all the places in the world, United States of America is the only country that has managed to come up with innovative ways of slapping extra paperwork, fees, penalties and regulations on bitcoin.As if these things are not enough, New York State has made it worse by introducing BitLicense.It is not just the bitcoin companies, even bitcoin users have started to feel the heat.Things get even weirder, especially when its neighboring country Canada, its ally United Kingdom and many more countries are making it easier for bitcoin companies to innovate and offer their services to the community.READ MORE: US Government Trading Commission Recognizes Bitcoin as a Commodity)submitted by π Rendered by PID 14581 on app-223 at 2017-06-24 13:04:45.177408+00:00 running 3522178 country code: SG.

IRS Needs to Pay Closer Attention to Bitcoin, TIGTA SaysBecause the IRS has figured out people could be secret millionaires from investing in Bitcoins and altcoins and hide their wealth.[1]TheIRS loves to get money, and there’s no way they’re going to pass up millions in taxes.Footnotes[1] Investing in Bitcoin, Ethereum and Altcoins Could Make You a MillionaireBecause that’s their job is to go after people with money and make sure the US taxes are paid.Also the IRS has a reputation to uphold.If someone told me that they were hiding money from the French or the Canadians, big deal.No one is scared of the Canadian or French tax collectors.Even the Chinese, Russian, or North Korean tax collectors can be ignored as long as you aren’t in China, Russia, or North Korea.You are hiding money from Vladmir Putin, hahahahaha.You can help them do that, as long as you remember not to visit Russia.However, the IRS has developed a fearsome reputation.If you owe the government US taxes, the US government will track you to the ends of the earth (literally) and there is no place safe to hide.

They have set things up so that no one dares help anyone that owes money to the United States.Since they have a reputation to uphold, they just have to be loudly visible.If you are hiding money, don’t think that bitcoin will help you, just pay up.They are afraid that bitcoin has the potential to create income that cannot be taxed.If you bought 1,000 BTC when it was $30 each ($30,000) and sold them all at the current price (~$780) you would make ~$750,000 in profit.That’s quite a sum, and the IRS would like the ability to tax it.And rightly so.But they are doing too much too late.It seems as though they are just now recognizing Cryptocurrencies as a new technology, and are trying to quickly grasp the industry.If they had slowly tried to implement systems while the cryptocurrency space was just starting to develop they might have had a different result.A result where people didn’t see them as “coming after” bitcoin.Tristan Johns' answer to Why use bitcoin instead of cash?The IRS is coming after bitcoin transactions because they think most are not reported on tax returns and virtual currency transactions are becoming more commonplace.