The IRS has a virtual currency team gearing up for tax season. Tax experts say anytime a person buys, sells or uses their cryptocurrency to purchase something they may owe taxes. Under IRS rules, virtual currencies are property which means profits and losses are taxed at the capital gains rate. The agency also hired a cryptocurrency software company to help track the movement of virtual money.
A growing number of tax attorneys in the U.S. now specialize in answering tax questions from people who have income from crytocurrencies.
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