Taxpayers with virtual currency, or cryptocurrency, are obligated to report gains from virtual currency mining and sales/dispositions. IRS is expanding enforcement efforts in this area. Taxpayers can expect IRS to continue to pursue records and other information from virtual currency marketplaces and exchanges. Such records will make clear those taxpayers that have not properly accounted for and/or reported taxable income. Taxpayers that deal in Bitcoin or other digital currencies should assess potential liability, make appropriate disclosures and achieve compliance. Contact LOAK Tax today for to assess your circumstance and develop a virtual currency income tax compliance plan.