With cryptocurrencies growing in popularity, there still remains a large elephant in the room: how are cryptocurrency transactions taxed? Here are a few takeaways to keep in mind heading into tax season:The IRS Taxes Cryptocurrencies as Property—Not as Fiat CurrenciesAccording to the IRS, cryptocurrencies are treated and taxed as property transactions. This could create major accounting headaches for your business if you handles high volumes of cryptocurrency transactions—especially with daily cryptocurrency transactions now surpassing 370,000 per day. Wage Tax Withholding Requirements Apply to Cryptocurrency-Based Employee SalariesJust because a company decides to pay its employees using cryptocurrencies instead of dollars or Euros doesn’t mean it’s also immune to wage tax withholding requirements. According to the IRS, all payments paid to employees are subject to income withholding requirements regardless of what form of payment the business uses to pay the wage.

Source: Forbes December 06, 2017 15:22 UTC