IRS Says Bitcoin Is Property, Not Currency

(Washington, DC) -- When it comes to federal tax purposes, the Internal Revenue Service is treating bitcoin as property and not currency. The IRS announced today the digital currency will be governed by the rules it uses for stocks and barter transactions. The feds also say that if wages are paid by bitcoin, they must be reported by an employer on a W-2 form. And those wages are subject to federal income tax withholding and payroll taxes.