Yes. Virtual currency is treated as property and is reportable as an asset in book basis financial statements. This asset may be used in business transactions or held as an investment. Calculation of the Tennessee excise tax begins with the net income reported on the respective federal income tax return. Therefore, federal general tax principles applicable to property transactions would apply. In addition, the franchise tax net worth tax base would include the book basis value of any virtual currency asset.
See IRS Notice 2014-21.