IRS recognizes that Bitcoins are money for some purposes, but not for all purposes
Since Bitcoins are not presently considered to be a currency, the normal barter rules apply – just as if the taxpayer was exchanging goods and services for property, such as gold bullion. Thus, if a taxpayer received Bitcoins in exchange for services, the taxpayer must report service income up to the fair market value of the Bitcoin received.
Full story on How the USA taxes Bitcoin
Leave a Reply