Virtual Currency Overview (Currently Unavailable)

Author: Annette Nellen

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

What Does It Mean When Clients Use Bitcoin and other Virtual Currencies?
This on-demand course covers different types of commonly used virtual currencies, how and why used, the IRS guidance, and the tax issues not yet addressed by the IRS or state tax authorities. Background to help understand the tax consequences includes definitions, FinCEN guidance on registration, and how individuals and businesses obtain and use virtual currencies. Recent actions by states and federal agencies will be covered as well as events and activities including splits, airdrops and ICOs. Due diligence considerations also will be addressed.

Publication Date: July 2018

Designed For
Practitioners who advise individuals and businesses.

Topics Covered

  • What is virtual currency?
  • Why individuals and businesses use virtual currency
  • How individuals and businesses acquire and use virtual currency
  • IRS guidance and open issues
  • Transactions, events, and activities not addressed by IRS guidance (Notice 2014-21)
  • Beyond just virtual currency-blockchain uses beyond bitcoin + ICOs
  • Due diligence considerations in assisting clients holding and using virtual currency
  • Resources

Learning Objectives

  • Identify virtual currencies, and how they are created and used
  • Describe the guidance from the IRS and open issues and how to deal with them
  • Identify types of cryptocurrency
  • Identify characteristics of a closed-flow virtual currency system
  • Recognize characteristic of the blockchain
  • Identify a blockchain split resulting in a major change in the protocol
  • Identify types of alternative currency
  • Recognize types of virtual currency system allows for the purchase of U.S. dollars with virtual currency
  • Identify reasons to use Bitcoin and other virtual currencies
  • Recognize which notice the IRS addressed the topic of virtual currencies
  • Identify blockchain splits resulting in a new chain still recognized by the older software/protocol that is similar to a software upgrade
  • Describe an event where tokens or virtual currency are generally used for funding and to build a network for a stated purpose

Level
Overview

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

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