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 [...]