The bitcoin is still an online currency, but that hasn’t stopped the federal government from cracking down on what it calls money laundering and cybercrime.
The Trump administration has been moving to crack down on bitcoin since the election, and the IRS has issued guidance on how to identify money launderers.
But some lawmakers say they still don’t understand how bitcoin works.
The IRS has warned against using the digital currency for tax evasion, and Congress has yet to pass legislation that would criminalize its use for tax purposes.
The tax code allows for deductions and credits that are available for many kinds of transactions, including those used for online purchases, gifts, mortgages, credit cards, and much more.
Some lawmakers have said the IRS is misusing bitcoin because the currency is a virtual commodity, and because it’s a currency that has been volatile in value.
In a recent hearing, House Ways and Means Committee Chairman Kevin Brady (R-Texas) said the Trump government should stop treating bitcoin as money and stop treating it as a commodity, not as a tool to launder money.
“We’re in a global economic meltdown,” Brady said.
“We’re on a trajectory to be in a financial crisis that’s going to be very disruptive for us, as well as the world.
And if we’re going to have a solution, that’s money.”
But the IRS isn’t taking Brady’s advice.
On Wednesday, the agency issued guidance clarifying that bitcoin is not a currency or a commodity under the law.
The agency noted that bitcoins are not subject to the reporting requirements of the Commodity Exchange Act, and its guidance was not meant to discourage people from using bitcoin.
When bitcoin is used as a currency, it can’t be used to buy or sell goods or services, and it’s illegal to transfer bitcoins to a third party.
But bitcoin isn’t a commodity and doesn’t qualify for the reporting rules of the CEA.
In a statement, the IRS said it’s also focused on combating money laundering by focusing on online and mobile commerce and tax evasion.
The bureau said it does not believe bitcoin is a commodity.
“Bitcoin is a digital currency that is not subject for reporting under the Commodic Exchange Act because it does none of the activities listed above,” the agency said.
“While the IRS encourages its employees to utilize the CPA’s reporting requirements, its primary focus is on its broader mission of fighting money laundering, terrorist financing, and cyber crime.”
But Bitcoin’s popularity has fueled speculation that it’s actually more of a tool for tax avoidance than a currency.
A study by the Institute for Justice, a conservative law firm, found that bitcoin has been used to avoid billions in taxes.
That includes $2.5 billion in tax refunds.
The IRS has said the agency is only focusing on the bitcoin, and not taxing it at all.
“The IRS does not intend to impose any new taxes on bitcoin or any other virtual currency,” the IRS wrote in a statement to Fox News.
“Instead, the goal is to use existing reporting requirements to identify individuals who use virtual currencies and to ensure that taxpayers are not defrauded by using virtual currencies to avoid tax.”
The IRS told Fox News it has been working with the IRS’s Taxpayer Advocate for Taxpayer Services to assist with the new guidance.