Tax experts remind consumers to be aware of the tax risks associated with Bitcoin payments

ChainCatcher news, according to Decrypt, the American chain restaurant Steak'n Shake has recently started accepting Bitcoin as a payment method, but tax experts remind consumers to be aware of the related tax risks. According to the Internal Revenue Service (IRS) regulations, cryptocurrencies are considered property rather than currency, and any use of Bitcoin to purchase goods is regarded as a taxable transaction.

Coinbase's Vice President of Tax, Lawrence Zlatkin, explains that when consumers use Bitcoin to buy goods, they need to calculate the difference between the purchase price of Bitcoin and its market value at the time of use as capital gains or losses, and pay the corresponding taxes to the IRS. Experts recommend that consumers keep all transaction records and choose a consistent method for tax reporting.

Although the IRS typically does not audit taxpayers for small transaction omissions, the risk still exists as centralized exchanges report more user transaction data to the IRS. Using stablecoins pegged to the dollar at a 1:1 ratio to purchase goods does not incur tax risks.