Will Overstock force IRS to make up mind on Bitcoin?

Plenty of government regulating bodies are sitting on the sideline when it comes to clarification on the digital currency bitcoin.  Now that Overstock is accepting bitcoin is it begs the question of how long it will last before tax implications are clearly expressed and enforced.

The IRS does need to tread lightly, to0 tight regulations or large tax burdens could drive bitcoin underground where they would have no recourse. This would also hinder bitcoin businesses from launching in the USA and moving to more bitcoin free countries like Germany, Singapore and others.

Either way, the pressure is on:



Today an article by forbes has more on the issue:

Overstock raised eyebrows earlier this month when the retailer announced it would accept Bitcoin as payment. While Bitcoin has slowly been making inroads into the U.S. economy, Overstock is by far the largest, most mainstream company to tout the currency as a legitimate means of payment.

[…] Bitcoin usage has increased by over 75% while the market value of Bitcoins in circulation increased more than ten-fold. Despite the virtual explosion in popularity, the IRS “has yet to issue specific guidance addressing the tax treatment or reporting requirements applicable to digital currency transactions.”

Full article here.

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