Since the IRS has yet to provide any real guidance in dealing with virtual currencies (see http://www.irs.gov/pub/irs-pdf/p2104c.pdf where they recommend to Congress that they should provide guidance, LOL), how should mining income be treated for tax purposes? My tax accountant isn't really sure at this point (I haven't found anyone who truly is).
As far as payments received or sent for a service or good, I think the exchange rate at the time of the transaction makes the most sense. However, when it comes payments received from mining pools, should each payout be treated the same (use the exchange rate at that time)? Or should it only matter when the currency is exchanged for a service, a good, USD, etc. (basically not value it until it is used for something other than crypto currency trading)?
This is probably a bucket of worms, but I wanted to see what others though. Thanks.
