IRS Requests Bitcoin Buyer Records in Broad Tax Evasion Case
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Re: IRS Requests Bitcoin Buyer Records in Broad Tax Evasion Case
#2This should be a good one.
Re: IRS Requests Bitcoin Buyer Records in Broad Tax Evasion Case
#3Well, that was kind of inevitable.
Re: IRS Requests Bitcoin Buyer Records in Broad Tax Evasion Case
#4I think this is a pretty reasonable request if they only want Americans who traded bitcoin.
The IRS and SEC have the power to compel brokerages to turn over trading records for people who bought/sold stocks on the stock market so the precedent is not only set but well established long, long, long ago.
I mean if you traded bitcoin but didn't claim the income on your taxes, then you just blatantly and almost certainly knowingly/intentionally lied on your taxes.
I'm not certain what there is to argue about or push back on here.
It's not like you can create something new like bitcoin and then with a straight face claim that its not an equity or currency so the law doesn't apply to you.
Capital gains are taxable, full stop, unless there is a specific law to override that, like selling your primary residence.
Can someone make the case that this isn't just a cut and dry issue?
Re: IRS Requests Bitcoin Buyer Records in Broad Tax Evasion Case
#5This was just a matter of time. Welcome to the reality of being involved in the money business in the USA. Coinbase is concerned with the breadth of the request. That is actually kind of cute considering that your bank has to report any transaction over $10000 to the US Dept of Treasury and people are actively prosecuted on suspicion of making transactions under this threshold to avoid reporting requirements [1].
Whenever I hear someone talk about the dream of anonymous currency. I kind of laugh to myself because I know how far the government currently goes to monitor every little piece of your financial life to make sure you are paying what you owe in taxes.
[1] https://www.washingtonpost.com/news/the-watch/wp/2014/03/24/...
Re: IRS Requests Bitcoin Buyer Records in Broad Tax Evasion Case
#6thats why on some level it is better to run your own wallet.
Re: IRS Requests Bitcoin Buyer Records in Broad Tax Evasion Case
#7I made a whole $50 on Coinbase. I expected some tax form to arrive, and it never came. Honestly I completely forgot about it until I saw this.
I wonder if that $50 will end up being hundreds owed in some kind of late fees/etc.
Re: IRS Requests Bitcoin Buyer Records in Broad Tax Evasion Case
#8It's really tempting to say that the IRS won't be able to do anything - you can't prove I spent/received this for type of activity.... but that's not how the IRS works. Once the IRS decides to audit, you are guilty until proven innocent. They will be elbow-deep into your figurative financial rectum, and you will (almost always) lose.
Re: IRS Requests Bitcoin Buyer Records in Broad Tax Evasion Case
#9I made a whole $50 on Coinbase. I expected some tax form to arrive, and it never came. Honestly I completely forgot about it until I saw this. I wonder if that $50 will end up being hundreds owed in some kind of late fees/etc.
I'm pretty sure they'll be overwhelmed by going after larger fish and nothing will ever come of it for such a small amount.
Re: IRS Requests Bitcoin Buyer Records in Broad Tax Evasion Case
#10I made a whole $50 on Coinbase. I expected some tax form to arrive, and it never came. Honestly I completely forgot about it until I saw this. I wonder if that $50 will end up being hundreds owed in some kind of late fees/etc.
They will probably not go after anyone who made less than like $500. Remember each time they go after someone it costs them money too.