The Government Accountability Office released a report highlighting the IRS’s lack of guidance for IRA investments in “unconventional assets.” Virtual currency is considered an unconventional asset, and taxpayers may not fully understand their responsibilities when investing in this type of asset.
On January 11, 2017, Coinbase filed a motion in federal court seeking to intervene and challenge an IRS summons. Coinbase's motion will be heard on February 16, 2017, along with a motion to intervene filed earlier by Jeffrey K. Berns, a Coinbase customer and managing partner of Berns Weiss LLP.
During a U.S. Treasury Department advisory council meeting in Washington DC, Matt Higginson, an Associate Partner at McKinsey & Company, discusses the blockchain in front of the Federal Advisory Committee on Insurance (FACI).
On January 3, 2017, Mr. Berns filed a reply in response to the IRS’s response to his motion to intervene. The reply counters the government’s argument and outlines why the court should reject the government’s attempt to artificially moot the motion.
An Initial Coin Offering has become a popular way for virtual currency entrepreneurs to raise funds for a new project or concept. This type of venture capital model, a hybrid between initial public offerings and crowdfunding, has been used to finance many virtual currency projects. However, as state and federal regulators have not enacted disclosure regulations that are specific to ICOs, there is little protection for investors. In order to maintain investor confidence, ICO issuers must proactively self-regulate and engage in responsible disclosure practices until a regulatory framework is in place.