Paying Taxes On Bitcoin

Bitcoin is the top cryptocurrency according to Cryptocurrency Market Capitalizations, making this crypto the top-ranked in market value of a company’s outstanding shares. Bitcoin and similar digital currencies from the Blockchains like Ethereum, Litecoin, and ERC20 tokens are becoming the next new technology. New followers and cryptocurrency experts predict that in time, digital currency will be more than just speculation, but a technology that will breakthrough and change the world as we know it.

Bitcoin and other cryptocurrencies like Ethereum, Litecoin, and ERC20 tokens are subject to regulation and taxation by the IRS. Taxpayers who fail to file their taxes on Bitcoin trading will ultimately face tax obligations like fines, penalties, interest, and additional tax consequences.