According to a survey done by the Pew Research Center whose results were published in April 2023, 17% of Americans indicated they personally have invested in, traded, or otherwise used virtual currency. Additionally, the number of people investing in or engaging in transactions involving virtual currency continue to increase. These statistics strongly suggest that tax preparers must be aware of the nature of virtual currency and its tax treatment. It's to provide that awareness that Tax Treatment of Virtual Currency was written.

Learning Objectives: 

• Recognize the methods of obtaining and storing virtual currency


• Describe how transactions involving virtual currency work


• Recall the basic nature of blockchains


• Apply the existing U.S. tax laws to virtual currency transactions


• Identify when and where to report taxable virtual currency events and transactions