IRS Issues Bitcoin Guidance -- It's Property, Not Currency, And 1099s Are Required

The IRS has issued a bevy of questions and answers about digital currencies like Bitcoin. The biggest news is that it is property for tax purposes, which means that: Wages paid to employees using virtual currency are taxable, must be reported on a Form W-2, and are subject to federal income tax withholding and payroll taxes. Payments using virtual currency made to independent contractors are taxable and payers must issue Form 1099. Gain or loss from the sale or exchange of virtual currency depen...