Lol! The block chain profiteers are welcomed to Press to Test that notion. Should be amusing, but I wouldn't want to be them.
Posted on 07/26/2019 12:29:54 PM PDT by SeekAndFind
If you own bitcoin or other cryptocurrencies, you might want to check your mailbox.
The Internal Revenue Service is in the process of sending letters to U.S. citizens who own virtual currency and potentially failed to pay the necessary taxes and to those who improperly reported taxes on digital assets last year, the agency announced Friday.
“Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties,” IRS Commissioner Chuck Rettig said in a news release. “The IRS is expanding our efforts involving virtual currency, including increased use of data analytics.”
The agency said it started sending out letters last week that by the end of August will reach 10,000 taxpayers. The list of names was obtained through “various ongoing IRS compliance efforts.” In some cases, the IRS said taxpayers could be subject to criminal prosecution.
Last year, popular trading platform Coinbase alerted 13,000 customers that it was complying with a court order to provide the IRS with information on accounts worth at least $20,000 from the years 2013 to 2015. The IRS did not say whether its mailing list was a result of the Coinbase disclosures.
Based on guidance issued in 2014, the IRS treats all virtual currencies — including bitcoin, ethereum and XRP — as property under U.S. tax law. That means that like real estate, the sale or exchange of tokens for other goods is a taxable event. And similar to stockholders, digital currency holders are required to report capital gains and losses from cryptocurrency trades.
(Excerpt) Read more at cnbc.com ...
But it’s all untraceable.
I’m actually not surprised by this.
(disclaimer: I have never had any cryptocurrency - I’m sure it’s hard to trace - unless the top guys give ya up).
I DO hope some ransomware people go to prison. For life, that is. THAT I am familiar with (attacked a company I was at).
I wonder how many of those bitcoin accounts were opened with other people’s information.
I’d be happy with a 25 year sentence.
But I’d take life.
I’m sure they’re not reporting their ill-gotten bankroll.
Of course, many of them are probably off-shore, too.
Hold it a year and sell it. Long term capital gains at 15%. Don’t sell? No taxes, but you take risks.
OR you can buy things like gold or land with bitcoin and end up owning assets (but still pay sales taxes on it).
I cannot believe the IRS is going after people that avoid the taxes, not because they are Republican or Conservative. Just call me skeptical.
Most of the big holders of bitcoin are Chinese nationals and foreign businesses that fall outside the jurisdiction of the IRS. Yet another reason why the whole crytocurrency thing is just a technical solution looking for a legitimate problem to solve.
RE: I cannot believe the IRS is going after people that avoid the taxes
Is this tax AVOIDANCE or tax EVASION?
The former is legal, the latter is against the law.
Anyone who thinks bitcoin is untraceable doesn’t know what they are talking about. Not only is it traceable, it is a public ledger.
If you make money, pay your taxes. I never understood why this was so hard to understand.
I should think so too.
I kept reading people say it’s untraceable. Heh, like their ISP doesn’t have a log, mandated by the Federal Government.
That’s been true for a long time. Shoot, even chat rooms were being logged 20 years ago.
The legit US exchanges treat you like a bank would—you have to provide the exact same information that you would to open an account at Bank of America.
Sure there are a ton of other exchanges off shore—or peer to peer. The IRS will not really be able to track that group.
In 2017 I made a ton of money with bitcoin—well into six figures. I happily wrote a big check to the IRS. No problem at all.
If there is no money, there can be no tax.
Taxation can occur only on conversion
Orlin J grabbe
They need to plainly show how they are going to track down un-taxed crypto currency. Otherwise, it ain’t gunna happen.
[In 2017 I made a ton of money with bitcoin—well into six figures. I happily wrote a big check to the IRS. No problem at all.]
Wow. Congrats.
Ah, cryptocurrency the stuff you make on a bunch of computers in your basement ? LOL
Me too. I think it was 2017. Yep. Paid my taxes. I still have some but haven’t converted any since.
Congrats to you!
“In 2017 I made a ton of money with bitcoin—well into six figures. I happily wrote a big check to the IRS. No problem at all.”
Did you pay your tax in bitcoins? Does the IRS accept bitcoin for payments on bitcoin gains?
Lol! The block chain profiteers are welcomed to Press to Test that notion. Should be amusing, but I wouldn't want to be them.
Why would the US Government accept tax money from criminal activity? Wouldn't that make our government no better than the criminals?
Well, the Feds didn't care. They wanted their green.
So they took it court, and lo and behold! The Supreme Court ruled, sure - illegally gained money is subject to tax.
The same thing will happen if block chainers attempt to claim they owe no taxes.
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