The IRS has begun sending letters to more than 10,000 cryptocurrency holders with a warning that they may have violated federal tax law. 

The letters state those who have profited from the trade or use of cryptocurrencies (such as Bitcoin) may be subject to a variety of taxes including capital gains.

Read more: IRS Sending Warning Letters to Cryptocurrency Holders

Author: Cynthia Pedersen

Pursuant to statements made by IRS Commissioner Charles Rettig on May 30, 2019, much-anticipated cryptocurrency tax guidance should be released “very soon.” Rettig suggested the guidance, which would come in the form of a revenue ruling and a revenue procedure, could be released within the next 30 days.

These statements come in the tailwind of Rettig’s May 16 letter responding to a request from 21 representatives in Congress urging the IRS to provide guidance on basic reporting. In that letter, Rettig assured the representatives that the soon-to-be-released guidance will address, among other issues:

Read more: Long-Awaited IRS Cryptocurrency Guidance on the Way

Blockchain is a new database technology that enables users to share constantly updated documents across a network. It promises unprecedented efficiency and seems poised to make M&A negotiations and due diligence faster, more accurate and cheaper. Within a few years, blockchain code might even potentially verify and execute merger agreements. But does the reality of blockchain live up to the hype surrounding it?

Read more: The Future is (Almost) Now - Blockchain Makes Big Promises to M&A Dealmakers

Author: Brett Neate

In a word? Yes.

In IRS Notice 2014-21 the Internal Revenue Service advises that, virtual currency or commonly known as cryptocurrencies such as Bitcoin are not considered to be currency (they consider it property), investors must report any gains made in the trading or use of cryptocurrencies. Taxpayers who realize a gain in cryptocurrency must report the cash equivalent (in USD) as of the date of the transaction (buy/receive and sale/use.)

Read more: Do I have to Report Gains Made Through Trading Cryptocurrencies?

Author: Tim Valtwies

It’s no doubt that in the last year cryptocurrency prices have been on a volatile ride. Even the most stable of cryptocurrencies, Bitcoin, which managed to fall in value by as much $2000 in one day in November last year has now gained more than 15% in the last week. Nevertheless, the popularity of cryptocurrencies continues to rise and with it comes the question of whether trustees of a Self-Managed Super Fund (SMSF) can and should invest in them.

Read more: Thinking of Investing in cryptocurrencies via your Self-Managed Super Fund?