Are there any specific rules or regulations regarding IRS audits for digital currency transactions?

1 answers

• Dec 27, 2021 · 3 years ago
  When it comes to IRS audits for digital currency transactions, there are specific rules and regulations that you need to be aware of. The IRS treats digital currency as property, which means that any gains or losses from its sale or exchange are subject to taxation. If you receive digital currency as payment for goods or services, it is considered taxable income and must be reported on your tax return. The IRS has also issued guidance on reporting requirements for digital currency held in foreign accounts. It's important to understand and comply with these regulations to avoid any potential issues with the IRS.
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