Some virtual currency units and positions are treated as securities by the Securities and Exchange Commission (SEC) and US courts. The Internal Revenue Service (IRS), however, has told taxpayers that it views convertible virtual currency as property, not foreign currency, for federal tax purposes. Lacking clear guidance from the IRS or the Department of the Treasury, this article addresses issues that may help determine whether Internal Revenue Code provisions that apply to securities might also apply to transactions involving virtual currencies and positions.

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