IRS Targets Crypto Currency

Proponents of cryptocurrency have touted their currency as untraceable and nontaxable.  Whether it's bitcoin, the new proposed Facebook currency, or the thousands of other electronic currencies, the IRS want's its share of the taxable pie.  Is it possible to fight the IRS?  Ask Al Capone or Martha Stewart?  Just like father time, the IRS is undefeated. IRS puts cryptocurrency holders on blast It may be cryptocurrency but you still owe taxes, says the IRS, which is sending letters to more than 10,000 holders. The notices detail the penalties if you don't pay up.

There are three versions of the letter which includes info on correcting past errors. One asks taxpayers to sign, under penalty of perjury, a statement that says they've complied with regulations, the Wall Street Journal reports.

Currently there hasn't been response from any of the crypto organizations.  With the added attention from the Internal Revenue Service, experts expect the federal government to continue to look at ways to add regulation to the growing cyber currency area.

If you haven't gotten one yet, don't assume you're in the clear. The agency says it'll take until the end of August to get them all sent out.   Will this impact how you and others save or invest your money?   Are you investing in cryptocurrency? Do you think it's safe? Do you still hide cash in jars buried in your back yard?