Sales Tax For Bitcoin Proposed

Sales Tax For Bitcoin Proposed

A new bill that Rep. Steve Stockman aims to introduce will require sales tax for the use of the Bitcoin. The proposed bill will be called the Virtual Currency Tax Reform Act, which may change the mandate of the IRS and how the agency will deal with virtual currencies.

Stockman said it is a nascent industry and together with nanotubes and 3D printers, cryptocurrency can be considered the future. He added that it should be encouraged and not discouraged. Stockman also said there is always a risk associated with all new industries in the US.

The IRS announced last month that the virtual currency can be considered as property when it comes to federal tax purposes in the US. However, the bill of Stockman will indicate that the Bitcoin and similar virtual currencies should be considered as a type of money.

The increasing attention on the Bitcoin by US officials shows the fast rate that the virtual currency is becoming mainstream. Numerous reports have emerged about the virtual currency, exchanges and ATMS. Reports have also pointed to the outrageous valuation of the virtual currency. The virtual currency is currently being traded at prices that range from around$300 to over $7,000.

Although virtual currencies have started to gain acceptance, numerous federal regulators are apprehensive that it is not easy to regulate these virtual currencies. These currencies can be easily manipulated or can be used I laundering other kinds of money. It will also provide people with the opportunity to evade some types of currency controls.

However, Stockman is a passionate supporter for virtual currencies and is supposedly the first congressman in the US to accept contributions using the virtual currency. Another congressman shares his interest in the use of virtual currencies. Rep. Jared Polis also supports the use of the Bitcoin and has sent numerous letters to federal regulators supporting the legitimacy of the virtual currency.

Posted by James Fried on Thursday April 10 2014, 3:52 AM EST. Ref: CNET. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0