First Bitcoin Transaction
The first BTC transaction occurred on January 12, 2009 when Satoshi Nakamoto sent 50 BTC to Hal Finney in block 170 of the transaction. The cost of the transaction is 0 BTC.
The infamous Bitcoin 🍕 Transaction
A guy buys two pizzas for 10,000 BTC ($25 at the time, over $100M in today’s value).
AICPA Comment Letter On IRS Notice 2014-21 (#1)
The AICPA applauds the IRS’s work on issuing Notice 2014-21 and points out 10 issue items not covered in the notice. Issue items are around valuation & documentation for crypto, mining cost (expensing vs. capitalizing), tax lot ID method, like-kind exchange treatment, nature of crypto held by a merchant, charitable donations, commodity tax rules, de minimis election under 988(e)(2), retirement accounts and foreing reporting requirement.
Bitcoin Nears $20,000, All Time High Price
A new wave of investors come into the crypto space as bitcoin and other alt coins reach their all time high values.
Kevin Brady Letter To The IRS
A letter from the US House of Representatives, signed by Kevin Brady (Chairman of Ways and Means Committee) and 4 other congressmen, criticises the IRS for conducting enforcement actions (ex:- Coinbase John Doe Summons) without issuing clear guidance on crypto taxation. These congressmen also asked the Government Accountability Office(GAO) to look further into the issue and audit the IRS’s effort in setting up crypto tax guidance.
Bipartisan Letter To The IRS Signed by 21 Representatives
21 representatives send a bipartisan letter to the IRS requesting clear guidance on three virtual currency related tax issues: acceptable method for calculating cost basis, FIFO vs. Specific Identification & tax treatment for forks.
Crypto Reporting Guidance For Accountants
The AICPA releases Accounting for and Auditing of Digital Assets practice to help accountants with cryptocurrency financial reporting issues.
IRS Deletes Gaming Tokens From The Virtual Currency Explanation
The inclusion of gaming tokens such as V-bucks and Roblox under the virtual currencies definition on the IRS website gets media attention. Then, the IRS quietly deletes these tokens from the website.
GAO Issues A Report on IRS’s Crypto Tax Strategy
The Government Accountability Office (GAO) reviews IRS’s efforts in the crypto tax space and issues, “Virtual Currencies: Additional Information Reporting and Clarified Guidance Could Improve Tax Compliance”. The report recommends 3 action items to the IRS 1 to the FinCen.
IRS Holds a Virtual Currency Summit
The service talks to the crypto industry stakeholders (exchanges, tax practitioners, advocacy groups, media, ec.) about crypto tax issues and related challenges in an invite-only event held in DC. The goal of the summit is to get to know more about this emmergin space and come up with practical compliance solutions.
IRS extends Federal Tax Deadline to July 15, 2020
COVID-19 hits the US economy. The IRS extends the tax deadline to July 15, 2020 for the first time in the history.