--- title: "Meaning & Key Takeaway of: The IRS issued guidance for virtual…" description: "\"The IRS issued guidance for virtual currencies on March 25, 2014 that stated virtual currencies, including Bitcoin, are to be treated as property for f..." image: "https://sms4smile.com/quotes/i/e80/perianne-boring-17200_bitcoin_the-irs-issued-guidance-for-virtual-curr_2424358.jpg" --- # The IRS issued guidance for virtual currencies on March… ![“The IRS issued guidance for virtual currencies on March 25, 2014 that stated virtual currencies, including Bitcoin, are to be treated as property for federal tax purposes. This requires capital gains on virtual currencies to be recorded and reported. The Bitcoin Foundation says this could lead to…” quote by Perianne Boring](https://sms4smile.com/quotes/i/e80/perianne-boring-17200_bitcoin_the-irs-issued-guidance-for-virtual-curr_2424358.jpg) [Download](https://sms4smile.com/quotes/i/e80/perianne-boring-17200_bitcoin_the-irs-issued-guidance-for-virtual-curr_2424358.jpg) [Open image](https://sms4smile.com/quotes/i/e80/perianne-boring-17200_bitcoin_the-irs-issued-guidance-for-virtual-curr_2424358.jpg) > “The IRS issued guidance for virtual currencies on March 25, 2014 that stated virtual currencies, including Bitcoin, are to be treated as property for federal tax purposes. This requires capital gains on virtual currencies to be recorded and reported. The Bitcoin Foundation says this could lead to unrealistic reporting.” [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Tax law treats cryptocurrencies as property, requiring capital gains reporting. **In simple terms:** Crypto taxed like property. Key Takeaway Maintain accurate records for tax compliance. Themes finance cryptocurrency regulation Mood concerned pragmatic Type informative advisory When to use this quote - tax filing - investment tracking - business accounting Key Concepts tax policy property classification Questions to Reflect On - Are current tax rules fair for everyday crypto users? - What alternatives could simplify compliance? A Different Perspective Complex reporting may deter casual crypto users. ★ ★ ★ ★ ★ No ratings yet [Bitcoin](https://sms4smile.com/quotes/about/bitcoin/) [Capital gains](https://sms4smile.com/quotes/about/capital-gains/) [Currencies Including](https://sms4smile.com/quotes/about/currencies-including-6145622/) [Currencies Recorded](https://sms4smile.com/quotes/about/currencies-recorded-6145621/) [Foundation](https://sms4smile.com/quotes/about/foundation/) [Including Bitcoin](https://sms4smile.com/quotes/about/including-bitcoin-2922909/) [March](https://sms4smile.com/quotes/about/march/) [Reported Bitcoin](https://sms4smile.com/quotes/about/reported-bitcoin-4940494/) [Says](https://sms4smile.com/quotes/about/says/) [Tax](https://sms4smile.com/quotes/about/tax/) [Virtual Currencies](https://sms4smile.com/quotes/about/virtual-currencies-2342503/) ## Related quotes > [Digital assets, including bitcoin, could save small businesses substantial transaction fees and provide an added layer of security to their payment processing.](https://sms4smile.com/quotes/perianne-boring/digital-assets-including-bitcoin-could-save-small-businesses/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [In April 2013, Nathaniel Popper of 'The New York Times' reported on Bitcoin in an article titled, 'Digital Money is Gaining Champions in the…](https://sms4smile.com/quotes/steve-hanke/in-april-2013-nathaniel-popper-of-the-new-york-times-reported-on/) [Steve Hanke](https://sms4smile.com/quotes/author/steve-hanke/) > [Virtual currencies, used to buy digital goods inside online games, have become an integral part of the Internet landscape.](https://sms4smile.com/quotes/ryan-holmes/virtual-currencies-used-to-buy-digital-goods-inside-online-games-have/) [Ryan Holmes](https://sms4smile.com/quotes/author/ryan-holmes/) > [People say it's a Ponzi scheme, it's a bubble. People really don't want to take it seriously. At some point, that narrative will shift…](https://sms4smile.com/quotes/cameron-winklevoss/people-say-it-s-a-ponzi-scheme-it-s-a-bubble-people-really-don-t-want/) [Cameron Winklevoss](https://sms4smile.com/quotes/author/cameron-winklevoss/) > [ \[Virtual Currencies\] may hold long-term promise, particularly if the innovations Promote a faster, more secure and more efficient payment system. ](https://sms4smile.com/quotes/ben-bernanke/virtual-currencies-may-hold-long-term-promise-particularly-if-the/) [Ben Bernanke](https://sms4smile.com/quotes/author/ben-bernanke/) > [“Central banks across the globe have been hesitant to recognize bitcoin as a form of money, and Tuesday’s vanishing act isn’t helping. Mt. Gox…](https://sms4smile.com/quotes/anonymous/central-banks-across-the-globe-have-been-hesitant-to-recognize/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [I think that Governor Romney operates on the capital gains tax, his investments, what he lives off of instead of doing it off of…](https://sms4smile.com/quotes/allen-west/i-think-that-governor-romney-operates-on-the-capital-gains-tax-his/) [Allen West](https://sms4smile.com/quotes/author/allen-west/) > [I can make a firm pledge, under my plan, no family making less than $250,000 a year will see any form of tax increase.…](https://sms4smile.com/quotes/barack-obama/i-can-make-a-firm-pledge-under-my-plan-no-family-making-less-than-250/) [Barack Obama](https://sms4smile.com/quotes/author/barack-obama/) > [I have worked with investors for 60 years and I have yet to see anyone - not even when capital gains rates were 39.9…](https://sms4smile.com/quotes/warren-buffett/i-have-worked-with-investors-for-60-years-and-i-have-yet-to-see/) [Warren Buffett](https://sms4smile.com/quotes/author/warren-buffett/) > [The tax on capital gains in Canada is twice as high as in communist China and we wonder why our ideas are being held…](https://sms4smile.com/quotes/pierre-poilievre/the-tax-on-capital-gains-in-canada-is-twice-as-high-as-in-communist/) [Pierre Poilievre](https://sms4smile.com/quotes/author/pierre-poilievre/) > [There were no jobs created in America from 1945, when the war ended, through 2003. How could there be? Taxes were too high. Preposterously…](https://sms4smile.com/quotes/andrew-tobias/there-were-no-jobs-created-in-america-from-1945-when-the-war-ended/) [Andrew Tobias](https://sms4smile.com/quotes/author/andrew-tobias/) > [The wealth in many large estates has never been taxed because it is largely in the form of unrealized - therefore untaxed - capital…](https://sms4smile.com/quotes/richard-thaler/the-wealth-in-many-large-estates-has-never-been-taxed-because-it-is/) [Richard Thaler](https://sms4smile.com/quotes/author/richard-thaler/) > [Imagine his delight after it 'leaked' that he will propose raising taxes on the wealthy by $320 billion over the next 10 years, including…](https://sms4smile.com/quotes/john-podhoretz/imagine-his-delight-after-it-leaked-that-he-will-propose-raising/) [John Podhoretz](https://sms4smile.com/quotes/author/john-podhoretz/) > [Democrats who see virtue in the estate tax are doing the equivalent of aborting future enterprises. They deprive businesses of oxygen with their support…](https://sms4smile.com/quotes/amity-shlaes/democrats-who-see-virtue-in-the-estate-tax-are-doing-the-equivalent/) [Amity Shlaes](https://sms4smile.com/quotes/author/amity-shlaes/) > [Nobody prefers to earn income any more, because that's taxable. Rich people prefer to make capital gains.](https://sms4smile.com/quotes/michael-hudson/nobody-prefers-to-earn-income-any-more-because-that-s-taxable-rich/) [Michael Hudson](https://sms4smile.com/quotes/author/michael-hudson/) ## More by Perianne Boring > [Sir Richard Branson started out as a small business owner and now owns a conglomerate that will give you a ride to the moon.…](https://sms4smile.com/quotes/perianne-boring/sir-richard-branson-started-out-as-a-small-business-owner-and-now/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [Exchanging bitcoin on behalf of ransomware victims should not be construed as criminal activity by the exchanger, not as a matter of law nor…](https://sms4smile.com/quotes/perianne-boring/exchanging-bitcoin-on-behalf-of-ransomware-victims-should-not-be/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [The credit/debit card transaction system is antiquated, expensive, and inefficient. There are over nine steps to complete a transaction from the time a customer…](https://sms4smile.com/quotes/perianne-boring/the-credit-debit-card-transaction-system-is-antiquated-expensive-and/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [If you are not an accredited investor, you only have one option: to buy and hold bitcoin on your own. The process of acquiring…](https://sms4smile.com/quotes/perianne-boring/if-you-are-not-an-accredited-investor-you-only-have-one-option-to-buy/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [After Jessica Mitford published 'The American Way of Death' in 1963, to expose the abuses in the funeral industry, a groundswell of support for…](https://sms4smile.com/quotes/perianne-boring/after-jessica-mitford-published-the-american-way-of-death-in-1963-to/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [Applying criminal law to the exchange of bitcoin on behalf of ransomware victims would create a morally shocking result of re-victimizing a victim. All…](https://sms4smile.com/quotes/perianne-boring/applying-criminal-law-to-the-exchange-of-bitcoin-on-behalf-of/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [In the US, banking and finance are regulated on the federal and state level, there are multiple federal bank regulators, and there are separate…](https://sms4smile.com/quotes/perianne-boring/in-the-us-banking-and-finance-are-regulated-on-the-federal-and-state/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [The law provides a remedy, charging those who threaten a victim's data for the purpose of extortion. Extending criminal liability to innocent third-party digital…](https://sms4smile.com/quotes/perianne-boring/the-law-provides-a-remedy-charging-those-who-threaten-a-victim-s-data/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [Blockchain startups are suffering from a crippling, archaic, and antiquated state regulatory system - and it's driving innovation abroad. Many blockchain start-ups trigger or…](https://sms4smile.com/quotes/perianne-boring/blockchain-startups-are-suffering-from-a-crippling-archaic-and/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [Bitcore was introduced to give a trusted platform to spur further bitcoin innovation, allowing BitPay to focus on what they do best: acquire merchants.](https://sms4smile.com/quotes/perianne-boring/bitcore-was-introduced-to-give-a-trusted-platform-to-spur-further/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [A new product, technology, or innovation - such as Bitcoin - has the potential to give rise both to frauds and high-risk investment opportunities.…](https://sms4smile.com/quotes/perianne-boring/a-new-product-technology-or-innovation-such-as-bitcoin-has-the/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [When you take a look at how the IRS treats foreign currency, bitcoin doesn't have the same taxation regime. Foreign currency gains and losses…](https://sms4smile.com/quotes/perianne-boring/when-you-take-a-look-at-how-the-irs-treats-foreign-currency-bitcoin/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [I hold no economic interest in any company in this industry; however, I do hold and use digital currency for my personal use. I…](https://sms4smile.com/quotes/perianne-boring/i-hold-no-economic-interest-in-any-company-in-this-industry-however-i/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [The Cyprus Financial Crisis was a devastating blow to Cypriots and halted their banking system. Banks closed for two weeks to prevent a banking…](https://sms4smile.com/quotes/perianne-boring/the-cyprus-financial-crisis-was-a-devastating-blow-to-cypriots-and/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [Bitcoin has been described as a decentralized, peer-to-peer virtual currency that is used like money - it can be exchanged for traditional currencies such…](https://sms4smile.com/quotes/perianne-boring/bitcoin-has-been-described-as-a-decentralized-peer-to-peer-virtual/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) [Explore all 37 Perianne Boring quotes ](https://sms4smile.com/quotes/author/perianne-boring/) ## More Bitcoin quotes > [The bitcoin network is not a payments network and it is not a scaling network.](https://sms4smile.com/quotes/sam-bankman-fried/the-bitcoin-network-is-not-a-payments-network-and-it-is-not-a-scaling/) [Sam Bankman-Fried](https://sms4smile.com/quotes/author/sam-bankman-fried/) > [I had been exposed to bitcoin early. I thought the consumer application of it felt, to me, further away. I thought there would be…](https://sms4smile.com/quotes/brad-garlinghouse/i-had-been-exposed-to-bitcoin-early-i-thought-the-consumer/) [Brad Garlinghouse](https://sms4smile.com/quotes/author/brad-garlinghouse/) > [In 2008, Bitcoin was mysteriously introduced to the world in an obscure, technical paper written under the pseudonym Satoshi Nakamoto. By late 2013, the…](https://sms4smile.com/quotes/steve-hanke/in-2008-bitcoin-was-mysteriously-introduced-to-the-world-in-an/) [Steve Hanke](https://sms4smile.com/quotes/author/steve-hanke/) > [We need to come up with use cases for this technology that drive clear benefits for individuals and institutions - these are our customers.…](https://sms4smile.com/quotes/abigail-johnson/we-need-to-come-up-with-use-cases-for-this-technology-that-drive/) [Abigail Johnson](https://sms4smile.com/quotes/author/abigail-johnson/) > [Sir Richard Branson started out as a small business owner and now owns a conglomerate that will give you a ride to the moon.…](https://sms4smile.com/quotes/perianne-boring/sir-richard-branson-started-out-as-a-small-business-owner-and-now/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [Exchanging bitcoin on behalf of ransomware victims should not be construed as criminal activity by the exchanger, not as a matter of law nor…](https://sms4smile.com/quotes/perianne-boring/exchanging-bitcoin-on-behalf-of-ransomware-victims-should-not-be/) [Perianne Boring](https://sms4smile.com/quotes/author/perianne-boring/) > [Until part of your paycheck is regularly paid in Bitcoin, I'm not sure how it would really go mainstream. I can imagine places in…](https://sms4smile.com/quotes/gavin-andresen/until-part-of-your-paycheck-is-regularly-paid-in-bitcoin-i-m-not-sure/) [Gavin Andresen](https://sms4smile.com/quotes/author/gavin-andresen/) > [Calling bitcoin volatile - it's a non-statement. Unregulated assets with unclear regulatory landscapes are always going to be volatile. That's what unregulated assets do.](https://sms4smile.com/quotes/tyler-winklevoss/calling-bitcoin-volatile-it-s-a-non-statement-unregulated-assets-with/) [Tyler Winklevoss](https://sms4smile.com/quotes/author/tyler-winklevoss/) > [We see bitcoin as potentially the greatest social network of all.](https://sms4smile.com/quotes/tyler-winklevoss/we-see-bitcoin-as-potentially-the-greatest-social-network-of-all/) [Tyler Winklevoss](https://sms4smile.com/quotes/author/tyler-winklevoss/) > [As the platform and protocol become more ingrained in society, get built into products and services, and basically become more of the mesh of…](https://sms4smile.com/quotes/barry-silbert/as-the-platform-and-protocol-become-more-ingrained-in-society-get/) [Barry Silbert](https://sms4smile.com/quotes/author/barry-silbert/) > [Bitcoin is not “unregulated”. It is regulated by algorithm instead of being regulated by government bureaucracies. Un-corrupted.](https://sms4smile.com/quotes/andreas-antonopoulos/bitcoin-is-not-unregulated-it-is-regulated-by-algorithm-instead-of/) [Andreas Antonopoulos](https://sms4smile.com/quotes/author/andreas-antonopoulos/) > [The rudest possible gift is a gift card. It means you think the person is stupid and has no interests. The only good gift…](https://sms4smile.com/quotes/john-waters/the-rudest-possible-gift-is-a-gift-card-it-means-you-think-the-person/) [John Waters](https://sms4smile.com/quotes/author/john-waters/) > [If the U.S. government tries to restrict or clamp down, that just means there will be many more bitcoin businesses in Hong Kong and…](https://sms4smile.com/quotes/roger-ver/if-the-u-s-government-tries-to-restrict-or-clamp-down-that-just-means/) [Roger Ver](https://sms4smile.com/quotes/author/roger-ver/) > [What bitcoin does better than the current financial system is it's a better stored value globally. There are a lot of countries that really…](https://sms4smile.com/quotes/adam-draper/what-bitcoin-does-better-than-the-current-financial-system-is-it-s-a/) [Adam Draper](https://sms4smile.com/quotes/author/adam-draper/) > [You really want some natural way for people to get Bitcoins, as part of their paycheck or some other activity so they can turn…](https://sms4smile.com/quotes/gavin-andresen/you-really-want-some-natural-way-for-people-to-get-bitcoins-as-part/) [Gavin Andresen](https://sms4smile.com/quotes/author/gavin-andresen/) [Browse all 364 Bitcoin quotes ](https://sms4smile.com/quotes/about/bitcoin/) ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "The IRS issued guidance for virtual currencies on March 25, 2014 that stated virtual currencies, including Bitcoin, are to be treated as property for federal tax purposes. This requires capital gains on virtual currencies to be recorded and reported. 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