IRS VIRTUAL CURRENCY GUIDANCE

FROM:  INTERNAL REVENUE SERVICE 

IRS Virtual Currency Guidance : Virtual Currency Is Treated as Property for U.S. Federal Tax Purposes; General Rules for Property Transactions Apply

IR-2014-36, March. 25, 2014

WASHINGTON — The Internal Revenue Service issued a notice providing answers to frequently asked questions (FAQs) on virtual currency, such as bitcoin. These FAQs provide basic information on the U.S. federal tax implications of transactions in, or transactions that use, virtual currency.

In some environments, virtual currency operates like “real” currency -- i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance -- but it does not have legal tender status in any jurisdiction.

The notice provides that virtual currency is treated as property for U.S. federal tax purposes.  General tax principles that apply to property transactions apply to transactions using virtual currency.  Among other things, this means that:
Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.

Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply.  Normally, payers must issue Form 1099.

The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.
A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.

JET PROPULSION LABORATORY USES FUEL CELLS TO INVESTIGATE ORIGINS OF LIFE

FROM:  NASA 

How Did Life Arise? Fuel Cells May Have Answers

How life arose from the toxic and inhospitable environment of our planet billions of years ago remains a deep mystery. Researchers have simulated the conditions of an early Earth in test tubes, even fashioning some of life's basic ingredients. But how those ingredients assembled into living cells, and how life was first able to generate energy, remain unknown.

A new study led by Laurie Barge of NASA's Jet Propulsion Laboratory in Pasadena, Calif., demonstrates a unique way to study the origins of life: fuel cells.
Fuel cells are found in specialized cars, planes and NASA's human spacecraft, such as the now-retired space shuttle. The cells are similar to batteries in generating electricity and power, but they require fuel, such as hydrogen gas. In the new study, the fuel cells are not used for power, but for testing chemical reactions thought to have led to the development of life.

"Something about Earth led to life, and we think one important factor was that the planet provides electrical energy at the seafloor," said Barge. "This energy could have kick-started life -- and could have sustained life after it arose. Now, we have a way of testing different materials and environments that could have helped life arise not just on Earth, but possibly on Mars, Europa and other places in the solar system."

Barge is a member of the JPL Icy Worlds team of the NASA Astrobiology Institute, based at NASA's Ames Research Center in Moffett Field, Calif. The team's paper appears online March 13 in the journal Astrobiology.
One of the basic functions of life as we know it is the ability to store and use energy. In cells, this is a form of metabolism and involves the transfer of electrons from one molecule to another. The process is at work in our own bodies, giving us energy.
Fuel cells are similar to biological cells in that electrons are also transferred to and from molecules. In both cases, this results in electricity and power. In order for a fuel cell to work, it needs fuel, such as hydrogen gas, along with electrodes and catalysts, which help transfer the electrons. Electrons are transferred from an electron donor (such as hydrogen) to an electron acceptor (such as oxygen), resulting in current. In your cells, metal-containing enzymes -- your biological catalysts -- transfer electrons and generate energy for life.

In the team’s experiments, the fuel cell electrodes and catalysts are made of primitive geological material thought to have existed on early Earth. If this material can help transfer electrons, the researchers will observe an electrical current. By testing different types of materials, these fuel cell experiments allow the scientists to narrow in on the chemistry that might have taken place when life first arose on Earth.

"What we are proposing here is to simulate energetic processes, which could bridge the gap between the geological processes of the early Earth and the emergence of biological life on this planet," said Terry Kee from the University of Leeds, England, one of the co-authors of the research paper.

"We're going back in time to test specific minerals such as those containing iron and nickel, which would have been common on the early Earth and could have led to biological metabolism," said Barge.

The researchers also tested material from little lab-grown "chimneys," simulating the huge structures that grow from the hydrothermal vents that line ocean floors. These "chemical gardens" are possible locations for pre-life chemical reactions.
When the team used material from the lab-grown chimneys in the fuel cells, electrical currents were detected. Barge said that this is a preliminary test, showing that the hydrothermal chimneys formed on early Earth can transfer electrons – and therefore, may drive some of the first energetic reactions leading to metabolism.

The experiments also showed that the fuel cells can be used to test other materials from our ancient Earth. And if life did arise on other planets, those conditions can be tested, too.

"We can just swap in an ocean and minerals that might have existed on early Mars," said Barge. "Since fuel cells are modular -- meaning, you can easily replace pieces with other pieces -- we can use these techniques to investigate any planet’s potential to kick-start life."

At JPL, fuel cells are not only for the study of life, but are also being developed for long-term human space travel. Hydrogen fuel cells can produce water, which can be recycled and used as fuel again. Researchers are experimenting with these advanced regenerative fuel cells, which are highly efficient and offer long-lasting power.

Thomas I. Valdez, who is developing regenerative fuel cells at JPL, said, "I think it is great that we can transition techniques used to study reactions in fuel cells to areas such as astrobiology."

Other authors of the paper are: Ivria J. Doloboff, Chung-Kuang Lin, Richard D. Kidd and Isik Kanik of the JPL Icy Worlds team; Joshua M. P. Hampton of the University of Leeds School of Chemistry, Mohammed Ismail and Mohamed Pourkashanian at the University of Leeds Centre for Fluid Dynamics; John Zeytounian of the University of Southern California, Los Angeles; and Marc M. Baum and John A. Moss of the Oak Crest Institute of Science, Pasadena.
JPL is managed by the California Institute of Technology in Pasadena for NASA.

UNEMPLOYMENT INSURANCE CLAIMS REPORT FOR WEEK ENDING FEBRUARY 15, 2014

FROM:  U.S. LABOR DEPARTMENT 
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT

          SEASONALLY ADJUSTED DATA

In the week ending February 15, the advance figure for seasonally adjusted initial claims was 336,000, a decrease of 3,000 from the previous week's unrevised figure of 339,000. The 4-week moving average was 338,500, an increase of 1,750 from the previous week's unrevised average of 336,750.
The advance seasonally adjusted insured unemployment rate was 2.3 percent for the week ending February 8, an increase of 0.1 percentage point from the prior week's revised rate. The advance number for seasonally adjusted insured unemployment during the week ending February 8 was 2,981,000, an increase of 37,000 from the preceding week's revised level of 2,944,000. The 4-week moving average was 2,959,750, a decrease of 6,500 from the preceding week's revised average of 2,966,250.

UNADJUSTED DATA

The advance number of actual initial claims under state programs, unadjusted, totaled 323,151 in the week ending February 15, a decrease of 35,008 from the previous week. There were 351,026 initial claims in the comparable week in 2013.

The advance unadjusted insured unemployment rate was 2.6 percent during the week ending February 8, unchanged from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,440,333, a decrease of 12,426 from the preceding week. A year earlier, the rate was 2.9 percent and the volume was 3,668,711.

The total number of people claiming benefits in all programs for the week ending February 1 was 3,525,006, an increase of 7,100 from the previous week. There were 5,581,677 persons claiming benefits in all programs in the comparable week in 2013.

No state was triggered "on" the Extended Benefits program during the week ending February 1.

Initial claims for UI benefits filed by former Federal civilian employees totaled 1,198 in the week ending February 8, a decrease of 176 from the prior week. There were 2,108 initial claims filed by newly discharged veterans, an increase of 192 from the preceding week.

There were 21,505 former Federal civilian employees claiming UI benefits for the week ending February 1, a decrease of 1,568 from the previous week. Newly discharged veterans claiming benefits totaled 29,681, a decrease of 958 from the prior week.

The highest insured unemployment rates in the week ending February 1 were in Alaska (5.8), Pennsylvania (4.2), Rhode Island (4.0), Connecticut (3.9), New Jersey (3.9), Wisconsin (3.8), California (3.7), Montana (3.7), Illinois (3.6), Puerto Rico (3.5), West Virginia (3.5), and Massachusetts (3.4).
The largest increases in initial claims for the week ending February 8 were in Georgia (+7,229), North Carolina (+1,347), South Carolina (+1,292), Alabama (+1,191), and California (+1,145), while the largest decreases were in New York (-2,721), Ohio (-2,348), New Jersey (-2,035), Connecticut (-1,149), and New Hampshire (-1,146).

U.S. HAS WARNING FOR RELEASED DETAINEES

FROM:  U.S. DEFENSE DEPARTMENT  
DOD Spokesman: Released Detainees Rejoin Fight at Own Peril
By Jim Garamone
American Forces Press Service

WASHINGTON, Feb. 14, 2014 – If the detainees the Afghan government released over NATO objections rejoin the fight, “they do so at their own peril,” Pentagon Press Secretary Navy Rear Adm. John Kirby said at a news conference today.
The press secretary said the 65 detainees released in Afghanistan yesterday are dangerous, and that releasing them was a bad decision for the Afghan people.
Some of those released have American blood on their hands, the admiral said, but he added that he is “not sure that that’s the only metric that matters here.”
The men should not be free, Kirby said. “We had strong evidence on all of them, evidence that has been ignored. And that's unsatisfactory to us,” he told reporters. “It’s not just United States forces in Afghanistan who are now victims of this, but so are the Afghan people, because many of these individuals killed innocent Afghans. They’re criminals, terrorists. They need to be detained, and they are not now, and obviously, that’s a decision that the Afghan government made.”
U.S. forces are not mobilizing to go after these individuals, Kirby said, but will continue to go after enemies targeting NATO forces and the Afghan people. “Should one of these detainees rejoin the fight, they need to know that they do it at their own peril,” he said.

Thursday, the U.S-led International Security Assistance Force in Afghanistan said some of the individuals previously released by the Afghan government have already returned to the fight and that additional released detainees may continue to fill the ranks of the insurgency.

Afghan President Hamid Karzai made the unilateral decision to release these individuals, Kirby noted. “They are still very dangerous individuals who should have remained locked up,” he added. “Now they are not. There’s not going to be an active targeting campaign … to go after them. That said, if they choose to return to the fight, they become legitimate enemies and legitimate targets.”

HHS TOUTS HEALTH INSURANCE MARKETPLACE ENROLLMENT INCREASES

FROM:  U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 

Enrollment in the Health Insurance Marketplace increases by 53 percent in January

27 percent of January enrollees are young adults – up 3 percentage points
from the previous reporting period

Enrollment in the Health Insurance Marketplace continued to rise in January, with a 53 percent increase in overall enrollment over the prior three month reporting period, with young adult enrollment outpacing all other age groups combined, HHS Secretary Kathleen Sebelius announced today.

Nearly 3.3 million people enrolled in the Health Insurance Marketplace plans by Feb. 1, 2014 (the end of the fourth reporting period for open enrollment), with January alone accounting for 1.1 million plan selections in state and federal marketplaces.  In January, 27 percent of those who selected plans in the Federally-facilitated Marketplace are between the ages of 18 and 34, a three percentage point increase over the figure reported for the previous three month period.  Young adult enrollment grew by 65 percent in January, from 489,460 at the end of December to 807,515 as of Feb. 1, while all other age groups combined grew by 55 percent.

The report for the first time also includes information on the type of plans selected (Bronze, Silver, Gold, etc.) distributed across demographic factors such as gender and age.  For example, it shows that 81 percent of young adults ages 18 to 34 selected plans at the Silver metal level or higher (Silver, Gold and Platinum plans).

“These encouraging trends show that more Americans are enrolling every day, and finding quality, affordable coverage in the Marketplace,” Secretary Sebelius said. “There is still plenty of time for you and your family to sign up in a private plan of your choice, so visit HealthCare.gov to learn more and sign up. Open enrollment ends March 31.”

Key findings from today’s report include:

Nearly 3.3 million (3,299,500) people selected Marketplace plans from Oct. 1, 2013, through Feb. 1, 2014, including 1.4 million in the State Based Marketplaces and 1.9 million in the Federally-facilitated Marketplace.
Of the almost 3.3 million:
55 percent are female and 45 percent are male;
31 percent are age 34 and under;
25 percent are between the ages of 18 and 34;
62 percent selected a Silver plan, while 19 percent selected a Bronze plan; and
82 percent selected a plan and are eligible to receive Financial Assistance, up from 79 percent during the Oct. 1 through Dec 28, 2013 reporting period.
Today’s report details state-by-state information where available.  In some states, only partial datasets were available.

The report features cumulative data for the four-month reporting period because some people apply, shop, and select a plan across monthly reporting periods.  Enrollment is measured as those who selected a plan.

To read the report visit: http://aspe.hhs.gov/health/reports/2014/MarketPlaceEnrollment/Feb2014/ib_2014feb_enrollment.pdf

To hear stories of Americans enrolling in the Marketplace visit: http://www.hhs.gov/healthcare/facts/mystory/index.html

INTERNATIONAL CENTER OF EXCELLENCE FOR COUNTERING VIIOLENT EXTREMISM FACT SHEET



Burj-Al-Arab Hotel In Dubai.  Credit:  CIA World Factbook.

FROM: U.S. STATE DEPARTMENT

Co-Chairs Fact Sheet: International Center of Excellence for Countering Violent Extremism
Fact Sheet
Bureau of Counterterrorism
December 14, 2012

Below is the text of the Fact Sheet issued by the Co-Chairs (Turkey and the United States) of the Global Counterterrorism Forum for the December 14, 2012, GCTF Ministerial-Level Plenary in Abu Dhabi.

"We have to continue working together to defeat extremist ideology, blunt the spread of radicalization, and slow the flow of recruits to terrorist networks. The UAE took an important step when it announced it would host the first-ever international center developed to combat extremism and develop those best practices that will do so."
--Secretary of State Hillary Rodham Clinton

"It is only through our collective efforts and sustained commitment that we, as a global community, will be able to address one of the most pressing issues in the context of counterterrorism, namely countering violent extremism."
--H.H. Sheikh Abdullah Bin Zayed Al Nahyan


Background: On 14 December 2012, ministers and other senior officials from the 30 members of the Global Counterterrorism Forum (GCTF) will inaugurate the first-ever international center of excellence for countering violent extremism (CVE), with its headquarters in Abu Dhabi, United Arab Emirates. At the September 2011 ministerial-level launch of the GCTF in New York, the United Arab Emirates offered to host this center in response to the growing desire from GCTF members and the wider international community for the establishment of an independent, multilateral center devoted to training, dialogue, collaboration, and research to counter violent extremism in all of its forms and manifestations, one that can bring together the experts, expertise, and experience that exist in countries around the globe.

This initiative could not be more timely. There is widespread agreement on the need to prevent individuals from starting down the path toward radicalization, the embrace of violence, and support for terrorism, as well as to divert those already on that path before they are fully committed and mobilized. With the opening of the International Center of Excellence on Countering Violent Extremism in Abu Dhabi there will now be an international institution dedicated to addressing this challenge.

Mandate: The Center’s mandate will focus on three core areas:
1) Training: Providing government and non-governmental stakeholders with the necessary training and practical tools to design and implement effective programs and policies to counter violent extremism in all of its forms;
2) Dialogue: Providing a dedicated platform to facilitate dialogue among community leaders, teachers and other educators as well as relevant national and local actors involved in CVE; and
3) Research: Conducting and commissioning research to gain a deeper understanding of the drivers of violent extremism, and which approaches are effective in countering it.

Relationship between the Center and the GCTF: Preventing individuals from starting down the path towards radicalization, the embrace of violence, and support for terrorism, is a priority for the GCTF. Although the Center will be independent from the GCTF and all of its members, a close partnership between the two bodies will be critical to their success. GCTF members have been engaged in the development of the Center and will be supportive of the Center’s governance and operation.

GCTF members are encouraged to support the Center in a number of ways. This includes:
• providing voluntary financial contributions to the Center
• sponsoring and delivering courses
• seconding staff (e.g., trainers or dialogue facilitators)
• sponsoring resident and non-resident research fellows and other visiting instructors
• identifying appropriate participants for the relevant Center activities.

With support from GCTF members and other countries, the Center will respond to and further develop efforts flowing from the GCTF CVE Working Group’s priorities. For example, the Center expects to develop a robust independent capability to evaluate CVE initiatives sponsored by GCTF members and other Center partners. Through its own sponsored initiatives and by providing support to those of others, the Center expects to advance work in the fields of CVE communications and messaging, as well as to play a key role in deepening understanding of how institutions – ranging from education through health and social services to law enforcement and prisons – can build resilience against violent extremism and to provide a reference point and training for officials in how to craft policies, programs and activities that minimize the risk of individuals being radicalized into violent extremism. Throughout its work, the Center will place a premium on collaboration and dialogue and will take practical steps to develop, expand and strengthen the emerging international CVE community of practice. Already, the Center has published the first issue of its Newsletter, and work is underway to create a web-portal for virtual collaboration.

Partnerships: Building and leveraging partnerships with existing international and regional training centers and academies, relevant academic and research institutions, and UN counterterrorism programs, including the newly-established UN Centre on Counter-Terrorism, as well as relevant private sector and non-governmental organizations from around the world will be a priority for the Center.

Multinational Governance and Staff: A multinational International Steering Board will provide the Center with the necessary policy and strategic guidance. It will initially be comprised of the ten co-chairs of the five GCTF Working Groups. The Center’s multinational staff, which will grow gradually over time, will be led by a Chief Executive Officer and Chief Operating Officer and include a mix of seconded CVE experts and direct-hires. The CEO will lead the Center and serve as the primary interface between the Center and the ISB and other senior external officials. The COO will help lead the Center, run regular meetings with Center staff, cooperate with the CFO on budget issues, oversee the performance of the central department management, as well as develop and submits the Center’s annual operational plan.

The Initial 12-18 Months: During its initial 12-18 months the Center intends to focus its efforts in a few key areas:
• convening CVE expert brainstorming sessions that support the GCTF’s CVE Working Group’s priorities;
• developing and piloting initial CVE training curricula, while seeking to integrate and leverage the efforts of GCTF CVE Working Group activities; and
• developing an international CVE community of practice, including by creating a Network of CVE Professionals from around the globe.

In addition, the Center intends to host a lecture and film series, as well as topical CVE workshops and conferences organized by international partners.

Curriculum Development: Among the initial subject matter areas where the Center will develop curricula and host workshops could include:
• media and messaging
• the role the security sector plays in CVE
• capacity building aimed at strengthening state institutions entrusted with the CVE mission
• empowering local actors
• empowering educators
• empowering knowledge and innovation
• the role of and empowering victims of terrorism
• the role of cultural and sports diplomacy in CVE
• the role of and engaging non-traditional CVE actors and initiatives.

CVE Center of Excellence Launch Schedule:
12 December UNODC half-day workshop on victims of terrorism
12 December UNICRI half-day workshop on prison de-radicalization
13 December GCTF Coordinating Committee to discuss Center and future programs
14 December Center Launch and GCTF Ministerial