http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Foreign-Currency-and-Currency-Exchange-Rates http://www.irs.gov/Businesses/Small-Businesses-&-Sel

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Foreign-Currency-and-Currency-Exchange-Rates http://www.irs.gov/Businesses/Small-Businesses-&-Self-Em... > "you must immediately translate into dollars all items of income, expense, etc. (including taxes), that you receive, pay, or accrue in a foreign currency and that will affect computation of your income tax. Use the exchange rate prevailing when you receive, pay, or accrue the item." This is fairly straightforward -- if you get paid in EUR, you have to use the exchange rate from when you get paid and declare your income in equivalent USD. Given that bitcoin calls itself a currency, I would expect the IRS to treat it the same way.