FAQs on Bitcoin
In Notice 2014-21, the IRS provided guidance in the form of frequently asked questions on how tax principles apply to convertible virtual currencies, including bitcoin. Generally, transactions involving such currencies are an exchange of property and, where paid for performing services, will be considered wages or self-employment income. For more, see “Tax Practice Corner: What Tax Preparers Need to Know About Digital Currency.”
Premium Tax Credit Special Rule for Domestic Abuse
Notice 2014-23 allows married taxpayers who are victims of domestic abuse to be considered unmarried in 2014 for purposes of the health care premium assistance credit’s joint-filing requirement under Sec. 36B(c)(1)(C). A married individual who does not meet the Sec. 7703(b) provisions for being considered unmarried may satisfy the Sec. 36B(c)(1)(C) requirement by (1) using the married filing separately status; (2) living apart from the spouse at the time of filing; (3) being unable to file a joint return because he or she is a victim of domestic abuse; and (4) indicating on the return that he or she meets requirements (2) and (3).
Out of Egypt (and Three Other Countries)
In Rev. Proc. 2014-25, the IRS identified four countries and beginning dates in 2013 for which it will waive the residency and physical-presence tests of the foreign earned income and housing cost exclusions under Sec. 911: Egypt, July 3; Lebanon, Sept. 5; Pakistan, Aug. 9; and Yemen, Aug. 6.
Sec. 911(d)(4) provides an exception to the tests for individuals who
leave a country because of war, civil unrest, or similar conditions
that preclude the normal conduct of business. Individuals must have
resided or been present in one of the countries before the specified
dates and establish that they reasonably expected to have met either
test but for the conditions.