Daily Tax Update - May 26, 2016: European Parliament Votes in Favor of Virtual Currency Monitoring

European Parliament Votes in Favor of Virtual Currency Monitoring:  Today, the European Parliament voted in a non-binding resolution to establish a taskforce to monitor the use of virtual currencies.  The resolution cited concerns that virtual currencies, such as Bitcoin, could be used to launder money or fund terrorism.  The proposal will now be sent to the European Commission for consideration.

House Small Business Committee Holds Hearing on Effect of Taxation on Entrepreneurs:  Today, the House Small Business Committee held a hearing titled “The Sharing Economy: A Taxing Experience for New Entrepreneurs, Part II.”  In his opening statement, House Small Business Chairman Steve Chabot stated that the IRS is making tax compliance more difficult for “sharing economy” companies like Uber and Airbnb because these companies are not providing information to their independent contractors out of fear that the IRS will reclassify them as employees.  The National Taxpayer Advocate, Nina Olsen, testified that the IRS should expand its outreach to participants in the sharing economy who often do not understand their tax requirements.  This hearing was the second part of a hearing held on the same topic on May 24.