Must A Taxpayer Who Receives Virtual Currency As Payment For Goods Or Services Include In Gross Income The Fair Market Value Of The Virtual Currency?

Receiving payment in virtual currency for goods or services

Yes. A taxpayer who receives virtual currency as payment for goods or services must, in computing gross income, include the fair market value of the virtual currency, 3 measured in U.S. dollars, as of the date that the virtual currency was received. See Publication 525, Taxable and Nontaxable Income, for more information on miscellaneous income from exchanges involving property or services.