ForexMinute.com – Renowned cryptocurrency exchange Cryptsy, via its CEO Paul Vernon, has ensured users of no impact of the recently released IRS guidelines on virtual currencies. The man cited a confirmation by the Cryptsy’s CPA firm, according to which, the IRS requirements would have no impact on their platform and its users.
The assurance is given in regards to the recently published notice by IRS, describing how existing general tax principles apply to transactions using virtual currency. The Notice 2014-21 also integrates a series of Frequently Asked Questions raised by virtual currency users. Question 12 and 13 in the published FAQs indirectly touches the services of exchanges like Cryptsy.
It says that the “payments made in Bitcoins valued over $600 for rent, salaries, wages, premiums, annuities, and compensation are subject to informational reporting. In addition, payments made to independent contractors in Bitcoins valued over $600 are subject to 1099 reporting.”
Paul Vernon confirms the users that it has no effect on the Cryptsy’s existing service mechanism. “If we understand it correctly, Project Investors will not have an additional 1099 reporting requirement for users,” says he.
Earlier, IRS has issued a press release saying that virtual currencies shall be treated as property for federal tax purposes in the US. It clears that digital currencies not treated as currency that can generate foreign currency gains/losses.
To contact the reporter of the story: Yashu Gola at email@example.com