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

(2k+ reviews)

Produced on December 06, 2019

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$ 59 Tax and Science & Technology In Stock
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Course Information

Time 62 minutes
Difficulty Beginner

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

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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

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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