Bitcoin billionaire? Don't forget the IRS

Coins are displayed next to a Bitcoin ATM in Hong Kong. The IRS says that cryptocurrency transactions are taxable by law. That means people who made money (or lost it) on Bitcoin trades, "mined" Ethereum or even bought a cup of coffee with digital currency face potential tax implications. Failure to report it could mean potential audits, fines and penalties. (AP Photo/Kin Cheung, File)
photo FILE- In this Dec. 8, 2017, file photo, a man uses a Bitcoin ATM in Hong Kong. The IRS says that cryptocurrency transactions are taxable by law. That means people who made money (or lost it) on Bitcoin trades, “mined” Ethereum or even bought a cup of coffee with digital currency face potential tax implications. Failure to report it could mean potential audits, fines and penalties.(AP Photo/Kin Cheung, File)

Cryptocurrencies like bitcoin may not be regulated by the government, but they're still subject to being taxed.

The IRS says that cryptocurrency transactions are taxable by law. That means people who made money (or lost it) on bitcoin trades, "mined" ethereum or even bought a cup of coffee with digital currency face potential tax implications.