One concern I have with BitCoin is that if left unregulated (and provided that it continues to gain acceptance) it offers an easy avenue for massive transactions to take place between criminal organizations. You're removing one level of inconvenience in eliminating the need for money laundering. If regulated, algorithms could be put in place (actually, I think they exist already, to a degree) that would generate reports of suspicious activity. But then if you were clever enough, you could just write code to circumvent this problem. We'd have to limit each person to one unique BTC account. Food for thought. I skimmed the notice, I'm not in total disagreement, BitCoin mining being treated as a self-employed business... ehhh, that doesn't seem unreasonable. But reporting BTC transactions in terms of USD to tax the transactions themselves... What is this, CoinStar? A stock trading service? Also, if BitCoin crashes before I submit my tax report, I could be paying taxes for something now completely worthless. The demonstrated volatility of BitCoin undermines this whole report a bit, but it's good we're at least trying to develop a methodology for treatment of a global currency. This is a pretty bad start though. I'd also like to point out the idiocy of requiring someone to file a paper-based report of already-logged digital activity in 2014, and expecting them to follow the honors system. Hah.
If bitcoin tanks before taxes you can report as a capital loss or even a income loss.
if you are paid in btc in works the same as being paid in stock. When you use btc to buy something you pay capital gains on the honor system i guess
It is in the hearts of capitalists. Sometimes put there by audits.
The cat's out of the bag at this point. The fact is, in the information age, it will always be possible to transfer value and launder money easily. Whether or not BitCoin itself succeeds long term, the tech exists now and it will take some form to fill the demand.