Congress Questions IRS On Efforts To Access Coinbase Customer Data

For months, customers, lawyers, and privacy experts have been voicing concerns about the scope of a “John Doe” summons that the Internal Revenue Service (IRS) seeks to serve on on Coinbase. Now, Congress has joined the clamor. This week, House Ways and Means Committee Chairman Kevin Brady (R-TX), Senate Finance Committee Chairman Orrin G. Hatch … Read more

Virtual Heads Or Tails: EU Says Bitcoin Is Currency For Tax Purposes While US Disagrees

Bitcoin is money. That was the gist of a ruling this week from the European Court of Justice (ECJ), the highest court in Europe. The ruling was in response to a dispute originally filed in Sweden. In the case, Skatteverket (Swedish Tax Agency) v. David Hedqvist, the ECJ was asked to rule on whether transactions … Read more

Don’t Forget Bitcoin At Tax Time

Getting those tax records together for the 2015 filing season? Don’t forget about Bitcoin. The Internal Revenue Service (IRS) issued guidance to taxpayers in 2014 on how to treat Bitcoin – and other virtual currency – for federal income tax purposes. That guidance, IRS Notice 2014-21, (downloads as a pdf) indicates that Bitcoin and other … Read more

The End Of The (Silk) Road For Bitcoin Millionaire As IRS, Fed Agencies Make Arrests

We used to assume that crime happened in predictable places: dark alleys and dicey street corners. In reality, some of the biggest crimes in the world are occurring in home offices and in family basements: some of the most sophisticated and damaging financial crimes just need an internet connection. A recent study by the Center … Read more

From Treasure To Trash: Man Tosses Out Bitcoin Wallet On Hard Drive Worth $9 Million

James Howell, a tech geek in the UK, made the painful realization that he had literally thrown away $9 million when he tossed out his computer hard drive. That hard drive stored 7,500 in bitcoins – an alternative currency that recently soared in value. But Howells’ folly is a good opportunity to talk casualty loss deduction: when can bad luck result in a tax deduction?

Virtually Wealthy

Remember my post about Second Life? Forbes has an interesting look at the kinds of numbers that the company is generating. And by way of comparison from that old post in October, here are the numbers today: Total Residents: 2,835,296 Logged In Last 60 Days: 1,007,488 Online Now: 23,967 US$ Spent Last 24h: $1,063,827 LindeX … Read more