TITLE

REAL TAXES ON VIRTUAL CURRENCIES: WHAT DOES THE IRS SAY?

AUTHOR(S)
Antonikova, Nika
PUB. DATE
December 2014
SOURCE
Virginia Tax Review;Winter2014, Vol. 34 Issue 3, p433
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper discusses the recent Internal Revenue Service (Service) guidelines on tax reporting for virtual currencies, such as Bitcoin, and argues that the Service should define convertible virtual currencies more narrowly to remove pure game experiences from the regulation. The author suggests that a more sensible definition can be developed based on the Government Accountability Office's proposed classification of virtual currency systems. Virtual currencies in open-flow systems such as Bitcoin should be treated as foreign currency, those in hybrid systems such as Second Life or other game worlds permitting real money transactions should be treated as property, and the Service should decline to tax transactions in closed-flow systems such as World of Warcraft.
ACCESSION #
109369767

 

Related Articles

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics