[preacher]

l8r

[palmer]

An earlier version of this story incorrectly referred to the IRS form on one occassion as Form 8948 not 8949

A later version misspelled occasion.

[McGruff]

Why didn’t they setup this Coinbase company offshore?

[Vermont Lt]

I reported them. I never thought I would be one of 812 in the country doing anything.

I guess I am the fool.

[amorphous]

The IRS created this problem by declaring Bitcoin a "property", and that it shall be valued at the time received by "fair market value". One problem is the value at the time depends upon which market, and what time of day it is valued because markets rise and fall greatly. Also, when being mined, it depends if you're mining as an individual or as a pool, as to when received, and the amount received - all of which has to be recorded, and a basis established when selling or transferring varying quantities at some later date, all of which may have been valued far differently - this creates an accounting nightmare!

I'm quite certain the great number of miners, traders, and investors simply claimed any profits as regular income or use some other method of calculating capital gains.

There wouldn't have been a problem if the IRS simply declared Bitcoin a commodity, as tax agencies of many other countries have, instead of a "property".

Which begs the question, is the IRS going to fine those who declared profits as simple income, and likely at a higher tax rates, or as capital gains only not reported via this particular form?

The problem is NOT with Bitcoiners, the problem is with the IRS's decision to declare Bitcoin a property. This is an issue in all probably Congress needs to address, or perhaps Trump could issue an EO declaring Bitcoin a commodity.

[Crossfeed]

I’m trying to decide whether to have more contempt for Bitcoiners than I have for the IRS.

[E. Pluribus Unum]

Just keep your bitcoins in your own wallet and nobody will have anything to report.

[Nailbiter]

ping

[bkopto]

...only a tiny percentage of virtual currency owners are reporting profits or losses in their annual returns.

You don't need to report anything annually if you buy and hold. Most are holders.