If you're a bitcoin investor and have cashed in on your gains — or made purchases using the cryptocurrency — don't forget the Internal Revenue Service is entitled to a piece of the action.
The value of one bitcoin has surged this year to more than $16,000 as of Thursday morning from $997 (and up from less than a dollar in 2010). There's a good chance if you have cashed out or paid for anything using it, you have capital gains to report to the IRS.
Basically, the tax agency views bitcoin and other cryptocurrencies as property and not currency for tax purposes. And although you may not receive a Form 1099 from whatever exchange you trade on, you remain responsible for paying taxes on gains. (Click on chart below to enlarge.)