The IRS collects data on Coinbase account holders
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Re: The IRS collects data on Coinbase account holders
#2Why fear a government agency with aging equipment and lack of employees due to continuous budget cuts by politicians who don't want their buddies audited? The IRS can't keep up with tax law changes and collect much of what they are supposed to collect already much less add new and more complex things to track.
Re: The IRS collects data on Coinbase account holders
#3My prediction: they will store the history of all Bitcoin transactions and try to identify all wallet owners; when identified they will check if profits were reported and if taxes were paid; if not -> good luck; the same for other countries in the world
Re: The IRS collects data on Coinbase account holders
#4Why fear a government agency with aging equipment and lack of employees due to continuous budget cuts by politicians who don't want their buddies audited? The IRS can't keep up with tax law changes and collect much of what they are supposed to collect already much less add new and more complex things to track.
Maybe it's different where you live, but my experience is that the only people that can afford to not fear the IRS are precisely the "politicians and their buddies"...it wouldn't surprise me at all to see task forces being formed just to identify under-reporting via Bitcoin and issue threatening letters (e.g. pay what is due or say goodbye to any assets you have) to whoever comes up on that list.
Re: The IRS collects data on Coinbase account holders
#5My prediction: they will store the history of all Bitcoin transactions and try to identify all wallet owners; when identified they will check if profits were reported and if taxes were paid; if not -> good luck; the same for other countries in the world
How is that even a prediction?
> store the history of all Bitcoin transactions
Bitcoin conveniently does this for them
> and try to identify all wallet owners
That’s the headline here
> check if profits were reported and if taxes were paid
Which is the IRS’ job
Re: The IRS collects data on Coinbase account holders
#6My prediction: they will store the history of all Bitcoin transactions and try to identify all wallet owners; when identified they will check if profits were reported and if taxes were paid; if not -> good luck; the same for other countries in the world
How is that even a prediction? > store the history of all Bitcoin transactions Bitcoin conveniently does this for them > and try to identify all wallet owners That’s the headline here > check if profits were reported and if taxes were paid Which is the IRS’ job
>Which is the IRS’ job
Ever heard of the 4th Amendment?
Re: The IRS collects data on Coinbase account holders
#7Why fear a government agency with aging equipment and lack of employees due to continuous budget cuts by politicians who don't want their buddies audited? The IRS can't keep up with tax law changes and collect much of what they are supposed to collect already much less add new and more complex things to track.
So, if you were American, had a coinbase account, and made significant capital gains in the years under investigation, would you not be worried?
Because it seems to me like they are very much capable of enforcement, as exemplified by the article.
Rich people in the US don’t avoid taxes by stymying investigations they give 5% of their income to Republican candidates and PACs, and have the law changed for them.
Re: The IRS collects data on Coinbase account holders
#8Earlier quoted context omitted.
How is that even a prediction? > store the history of all Bitcoin transactions Bitcoin conveniently does this for them > and try to identify all wallet owners That’s the headline here > check if profits were reported and if taxes were paid Which is the IRS’ job
>Which is the IRS’ job Ever heard of the 4th Amendment?
The 4th amendment does not prevent combing through public data (the blockchain), nor does it prevent going through due process to obtain data (the coinbase order).
Re: The IRS collects data on Coinbase account holders
#9Earlier quoted context omitted.
How is that even a prediction? > store the history of all Bitcoin transactions Bitcoin conveniently does this for them > and try to identify all wallet owners That’s the headline here > check if profits were reported and if taxes were paid Which is the IRS’ job
>Which is the IRS’ job Ever heard of the 4th Amendment?
Cross-referencing a public ledger is not an illegal search.
Re: The IRS collects data on Coinbase account holders
#10Why fear a government agency with aging equipment and lack of employees due to continuous budget cuts by politicians who don't want their buddies audited? The IRS can't keep up with tax law changes and collect much of what they are supposed to collect already much less add new and more complex things to track.
So, if you were American, had a coinbase account, and made significant capital gains in the years under investigation, would you not be worried? Because it seems to me like they are very much capable of enforcement, as exemplified by the article. Rich people in the US don’t avoid taxes by stymying investigations they give 5% of their income to Republican candidates and PACs, and have the law changed for them.
Coinbase has already issued tax forms for those who owe capital gains taxes because of cryptocurrency sales. So this isn't in any way new or unexpected.