Let's Bitcoin takes off. Say you lived in the US and had an online service that dealt in the equivalent of ~20,000 USD or more income for you (personally). What are the laws for income tax on a currency like this? Can you get in trouble with the IRS by simply having tons of BTC that the market values at (currently) almost 5$ per BTC?
Hi there shooter_mcgavin! As far as I know it hard to impose tax to bitcoin alone specially if you are just mining it on you own. What I think that could be taxable is the profit you generate from trading bitcoins. You could see some exchange that reminds people to pay tax, some even ask for your tax reference number. This shows that the exchanges is currently or will collect a certain amount that will go thru as a tax. There could be some company that will follow this steps but by now, I seen none, and hope some dont follow.
