According to Decrypt, the American chain restaurant Steak'n Shake has recently started accepting Bitcoin as a payment method, but tax experts warn consumers to be aware of the associated 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.
Lawrence Zlatkin, Vice President of Tax at Coinbase, explains that consumers 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 suggest that consumers keep all transaction records and choose a consistent method for tax reporting.
Although the IRS generally 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 1:1 to the dollar to purchase goods does not incur tax risks.