IRS, Taxation & Virtual Currencies

We have written before concerning the IRS position on virtual currency, like Bitcoins.  In Notice 2014-21, the IRS adds information. The IRS is aware that virtual currency is used to pay for goods or services, and can be held for investment.  This digital data is considered to be a convertible virtual currency because it can be exchanged for, or into, various international currencies. The sale or exchange of virtual currency, or use of currency to pay for goods or services, has tax consequences which may result in income tax.  Virtual currency is treated as property for tax purposes, and the [...]

IRS’s “common law” test to determine independent contractor/employee status

It’s critical for an enterprise periodically to review the status of its workers and see if they are properly classified. An enterprise must withhold federal income tax, social security taxes, and federal unemployment taxes on wages it pays workers who are employees. It also may have to provide them with the same fringe benefits and retirement plan coverage available to its other employees. There may be state tax obligations as well. By contrast, these responsibilities don’t apply for workers who are independent contractors. The business simply cuts them a check for their services and sends them a Form 1099-MISC. [...]

June 28th, 2013|Business Tax|Comments Off on IRS’s “common law” test to determine independent contractor/employee status
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