Hot Topic Alert: March 26, 2014
Attention: Economic and financial reporters and editors
COLLEGE PARK, Md. - The IRS announcement to treat Bitcoin as taxable property means a new government revenue stream and authority to rein in government-avoiding users of the digital money system, says Joseph Bailey, an electronic commerce expert in the University of Maryland's Robert H. Smith School of Business.
Bailey, research associate professor of technology, management and policy, is available (at 301-405-2174 or firstname.lastname@example.org) to expand on the following, related comments:
“The IRS position to treat Bitcoin as property is a very important and frankly clever move by the federal government.
“With this definition, the U.S. government requires all companies and individuals to report on their Bitcoin profits.
“Not only can the government get taxes on the sale of Bitcoins, it can get a relatively high tax when there are short-term gains undermining the value of Bitcoins for short-term speculation.
“Furthermore, the individuals and companies who may be living in the Bitcoin ecosystem to avoid government oversight are no longer completely free. The value of Bitcoins to transact in illicit or illegal activities now is diminished.”