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"Virtual Currency" in a Real Tax World: Tax Implications for Buying, Selling, and Using Virtual Currencies

(4k+ reviews)

Produced on December 06, 2019

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$ 59 Tax and Science & Technology In Stock
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Course Information

Time 1h 2m
Difficulty Beginner
Topics covered in this course: Tax Science & Technology

Course Description

"Virtual currency" (e.g., Bitcoin, Ethereum, Litecoin) has become increasingly popular in today's economy. This development has invited increased IRS scrutiny of taxpayers that engage in various types of transactions utilizing this (relatively) new manner of exchange. Most recently in 2019, the IRS announced that it had begun to send letters to taxpayers involved in virtual currency transactions regarding the potential failure to report to such transactions properly and failure to pay the appropriate tax incurred as a result of such transactions. IRS Commissioner Chuck Rettig stated that "taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties." Rettig continued by saying, "The IRS is expanding our efforts involving virtual currency, including increased use of data analytics. We are focused on enforcing the law and helping taxpayers fully understand and meet their obligations."

Given the heightened focus of the IRS on virtual currency transactions, it is extremely important that taxpayers and their tax advisors understand the tax implications associated with buying, selling, and otherwise using virtual currencies, including the IRS' position regarding the appropriate tax treatment and reporting related to such transactions. This course, presented by J. Troy Terakedis, co-chair of Dickinson Wright's Tax Practice Group, will discuss these tax implications as well as address the various guidance that has been issued by the IRS which shed some light on how the IRS will treat virtual currency from a tax perspective.


Learning Objectives:

  1. Review IRS guidance regarding the appropriate tax treatment of virtual currency as set forth in IR Notice 2014-21
  2. Assess IRS treatment of the purchase and sale of virtual currency
  3. Analyze IRS treatment when virtual currency is used to pay for goods and services
  4. Comply with tax reporting requirements in light of IR-2019-132
  5. Discuss remedies for noncompliance

Credit Information

After completing this course, Lawline will report your attendance information to {{ accredMasterState.state.name }}. Please ensure your license number is filled out in your profile to ensure timely reporting. For more information, see our {{ accredMasterState.state.name }} CLE Requirements page . After completing this course, {{ accredMasterState.state.name }} attorneys self-report their attendance and CLE compliance. For more information on how to report your CLE courses, see our {{ accredMasterState.state.name }} CLE Requirements FAQ .

Faculty

Troy Terakedis

Dickinson Wright

Acknowledgements

  • Listed in Best Lawyers in America, 2009-present

    • Tax Law - "Lawyer of the Year 2017"

    • Estate Planning

  • Listed in Ohio Super Lawyers, 2013-present

    • Tax

  • Listed in Ohio Super Lawyers, Rising Stars, 2005-2007

    • Tax

  • AV Preeminent Rated by Martindale Hubbell™

  • Columbus Business First “Forty under 40”, Class of 2009


Prominent Assignments

Tax, corporate and general business counsel for companies in the technology, real estate, charter school management, manufacturing, distribution, retail, financial, insurance, legal, healthcare and other industries.

Advise closely-held and public companies in connection with federal income tax and other issues in structuring tax-free and taxable transactions including mergers, divestures, spin-offs, split-offs, asset sales and equity rollovers.

Assist companies and their owners in structuring and implementing employee stock ownership plans (ESOP) in connection with the sale of company stock to the ESOP, including advising with respect to deferral of gain recognition under IRC Section 104L2.

Counsel to closely-held companies regarding choice of entity and other structuring considerations.

Counsel to private equity funds regarding fund formation and tax-related matters, with an emphasis on federal partnership tax issues.

Advise both U.S. and foreign companies on cross-border merger, acquisitions, divestitures and other structuring issues. 

Advise clients in connection with the formation of IC-DISCs, IRC Section 1031 exchanges, and other efficient income tax strategies.

Counsel companies on federal income tax and business matters related to the design and implementation of equity and similar compensation arrangements including partnership “profits interest” plans, stock option plans, phantom stock plans, stock appreciation rights, and other nonqualified deferred compensation programs.

Counsel to officers and directors of Fortune 500 companies, principals of private equity funds, owners of closely-held businesses and other high net worth individuals and executives on federal income tax, business succession planning, and estate and gift tax planning matters, including the formation of family limited partnerships and limited liability companies, grantor retained annuity trusts, sales to defective grantor trusts, qualified personal residence trusts, life insurance strategies, formation and funding of family foundations, charitable lead and remainder trusts, and other sophisticated wealth transfer and asset protection strategies.


Publications/Presentations

  • “Taxation of Partnerships and Flow-Through Entities”, The 57th Annual Cleveland Tax Institute, Cleveland Metropolitan Bar Association, Cleveland, Ohio, December 3, 2014

  • “Purchase, Sale, Exchange, and Retirement of Partnership and LLC Interests”, Choosing the Best Business Entity for your Client’s New Business, Sterling Education Services, Inc., Cleveland, Ohio, May 16, 2012

  • “M&A for Small Businesses – Buyer’s Side”, Columbus Bar Association, Columbus, Ohio, April 11, 2012

  • “Demystifying the Complexity of Section 704(b) Allocations and the Passive Loss Rules”, 2009 Mega Tax Conference, Ohio Society of CPAs, Columbus, Ohio, December 2, 2009

  • “Section 83 and Taxation of Compensatory Partnership Interests”, Taxing Matters, Columbus Bar Association, Columbus, Ohio, December 13, 2006



Reviews

NL
Neil L.

Thanks

KL
Karen L. L.

Very informative discussion of an up and coming subject area!

RK
Reva K.

Nice job of back ground . Materials are very helpful

BF
Becky F.

very good instructor and I learned a lot. presented in a manner that was easy to understand. I hope this instructor will be used for other tax courses.

BK
Brian K.

Good course

NN
Nicole N.

very interesting

LS
LaDonna S.

Great presentation

CV
CHRISTINE V.

Excellent presentation

JT
Judith T.

Good speaker. Explains complicated issues well.

AS
Allan S.

Very Clear and useful presentation.

JM
Jeffrey M.

Thanks!

SS
Simon S.

Very good presenter. Made it easy to understand a complex subject. Thank you.

SW
Stephen W.

Exceptionally knowledgable and effective presentation

PW
Patrick W.

Great CLE to bring the newcomer up to date on Bitcoin and other virtual currency.

DW
Danielle W.

Good materials. Thank you

JZ
James Z.

Good course content.

SS
Steven S.

Have more of these CLE courses on virtual currency please!

TD
Timothy D.

nicely organized presentation

RB
Rashaad B.

Great introductory to a new tax issue

RC
Robert Z C.

Great course, great subject!

SC
Stephanie C.

Great job! Thank you!

JC
James Ming C.

Very thorough coverage of an extremely complicated subject. Thank you!

JD
Joseph D.

Fascinating topic - thorough - I learned about crypto-currencies and have an understanding of the tax implications - well done program!

VW
Valerie W.

Excellent speaker

HJ
Hilary J.

Very complicated subject.

BW
Brandon W.

Very good session. Informative and engaging.

SM
Steve M.

I really enjoyed this one and can use what I learned with client work.

MK
MICHAEL K.

Excellent presentation by a very knowledgeable host.. Thank you!

SM
Susan M.

I would like a little more discussion at the beginning of What is crypto currency and bit coin. Where do you get it. I need more basic info. Do not have any clients using it, but I know it exists.

BW
bill w.

Nicely prrsented

JC
James C.

I appreciate the convenience of the Lawline application

CS
Clarence S.

Excellent presentation of newly developing area of tax law.

MN
Mark N.

Helpful information and course.

AS
Alan S.

Very informative

TD
Thomas D.

terrific!

JN
Josh N.

Very informative and well-presented.

FV
Frederic V.

very interesting

AB
Alan B.

Excellent course. Thank you.

MC
Michael C.

Interesting Topic

JW
Jason W.

Very well thought out and organized.

KH
Kenneth H.

Informative.

MG
Mary E G.

Very provocative topic. Informative and interesting information.

NG
Neelima G.

Very good info. Enjoyed the course.

DP
David P.

Didn't know anything about this subject before. Now i am at least familiar with some of the language and tax consequences.

DW
Donna W.

I find this area confusing, yet fascinating! The faculty did a good job explaining the basics and up to date law.

SW
Sam W.

informative

JB
John B.

Great job!

MN
Matthew N.

Specific much appreciated.ity of tax code provisions

DR
David R.

My only criticism is that the program is very basic, which as as described; so my criticism is minimal.

RH
Randel H.

The information was a bit tough to follow at times, but there was no doubt that the presenter was knowledgeable.

BG
Burton G.

Very detailed explanation

JM
John M.

Excellent

LS
Lowell S.

Interesting.

MM
MARY M.

Very good. I hope this is going to be updated regularly.

IP
Iliana P.

I learned and was more interested as time went on. He was excellent at making the information interesting even if you had no prior knowledge. Thanks,

BZ
Ben Z.

Incredible detail

MB
Michael B.

Thank you.

VE
Vincent E.

Very interesting

RG
Robert G.

more speculation on possibilities of future government attempts to better track these transactions might help avoid possible inadvertent future compliance failures.

DM
David M.

Fascinating new topic not adequately covered elsewhere.

RA
Raymond A.

The presentation of this lecture was excellent and understandable even if you have only beginner's experience with cryptocurrency.

CB
Carlton B.

Good, clear speaking voice and cadence. Also, very informative to this newbie. Thanks

LE
Lisa E.

Something attorneys really need to get smart on especially if there are in international finance

DA
Daniel A.

help me to identify issues for clients

SO
Stephen O.

Cogent, concise. Informative.

GD
Gary D.

A very straight summary of bitcoin as a concept and an exchange medium. The explanation of the IRS rule and tax treatment is well explained and easily understood.

SO
Shawn O.

Great presentation. Very informative.

JG
John G.

Good materials Good information Good information

DT
David T.

Very informative regarding basic tax implications and reporting requirements in connection with the acquisition and use of cryptocurrency.

AM
Angie M.

It was very comprehensive. I enjoyed the presentaiton.

VM
Victoria M.

This was enjoyable

XB
Xiao B.

Very useful.

SR
Sean R.

Good

GG
Gary G.

Very good explanation of a difficult topic. Highly useful.

ER
Edward R.

great presentation

KS
Kathleen S.

This is the FIRST cryptocurrency course I have taken that adequately explained V.C. creation, valuation, vocabulary, timing, basis, tax consequences, etc. Outstanding job! You packed in a tremendous amount of content in only one hour. Thank you.

MJ
MITZI J.

I’m Interest in bitcoin

AK
Alex K.

Interesting material on new technologies.

LG
Laura G.

Interesting subject matter. The presenter provided definitions, procedures, and tax information on cryptocurrency. The presentation gave me insight into how cryptocurrency plays a part in everyday life. Taxation of cryptocurrency was discussed.

JM
John M.

Very good

AL
Annette L.

A good introduction with primary source materials to reference

RM
Robert M.

Good walk through on IRS directions concerning cyber currency.

DH
David H.

Interesting topic.

WL
William L.

Very interesting topic!

MG
Michael G.

thanks

WO
Wendy O.

It was great

DD
David D.

Excellent presentation.

SE
Shari E.

really informative webinar!

SA
Sandra A.

Good explanation of what virtual currency is all about

NH
Natalie H.

Absolutely fascinating and we need more seminars on this topic.

CE
Catherine E.

Extremely informative, well-organized treatment of a completely new and different (for me) topic

AF
Amy F.

very informative

DS
Debra S.

excellent

MZ
Maxwell Z.

OK

LL
Lily L.

Great topic

DD
Davina D.

Very informative.

MS
Manish C. S.

I liked the course

LC
Lawrence C.

Very interesting topic and very thoroughly presented!

AM
Anne M.

This was a very informative session that I enjoyed!

EH
Earl H.

Very very well structured and clear

JL
Jack L.

Great

SG
Sarah G.

interesting topic

GA
Gene A.

I've been trying to understand the technical aspects of cryptocurrency for a very long time and Troy finally put in a concise presentation. Perhaps it took the tax consequences to fully understand it. Excellent course!

JF
James F.

great information

WS
William S.

Excellent presentation and very thorough.

AP
Andrew P.

Very well done and super concise

HC
Harry C.

excellent

JM
James M.

Great presentation - loved it. Thank you so much for explaining a complicated subject into easily understood terms.

CB
CHRISTOPHER B.

Solid

VP
victoria p.

Explained complicated material in an easily understandable fashion.

DR
Dane R.

Excellent presentation.

MS
Merrill S.

cleared up a lot of questions about how virtual currency works and is taxed!

CD
Candice D.

Very interesting material!

LP
Lauren P.

Learned a great deal on this one. Thanks!

WL
william l.

timely and informative

JH
Job H.

Excellent course.

JA
James A.

Clear and well-organized.

RT
Ryan T.

The playback was really bad on this one, the program itself was well done.

GR
Gregory R.

Very informative program.

DW
daniel w.

thank you!

MS
Michael S.

Good

DZ
David Z.

Wonderful lecture on these issues!

RC
Russ C.

excellent in an emerging field

DM
Donald M.

Interesting topic

TP
Thomas P.

Excellent Course!

TS
Thomas S.

Very timely topic. Excellent detail.

DS
Darryl S.

This is a very complex and rapidly changing area of the law. The presentation was well done.

CP
Christopher H P.

Wonderful! Very informative and I now understand what is Bitcoin.

CG
c. g.

EXCELLENT presentation. informative. Knowledgable

DE
David E.

excellent

WL
Wayne L.

Most outstanding and interesting. A must for anyone wanting to understand blockchain and currencies. A very competent presentation.

GP
Georgian P.

Excellent! Interesting and informative presentation.

JJ
Jeffrey J.

Complicated and still-novel topic for me, but instructor did a good job of identifying key issues for me and also highlighting areas where the IRS' interest was focused.

TB
Teresa B.

Interesting subject and a great presenter!

JK
John K.

Good job.

AH
Alexander H.

Excellent course

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