Tax Season in the USA

I am thinking about the beauty of having crypto currency transactions on a blockchain. All transactions are recorded forever.

If the government ever passes tax legislation there will be no need to find records. Everything is on the blockchain. Until they do pass a law, the blockchain is mostly anonymous. There is no direct link to federal tax identification numbers.

I do not know the legal term, but I am sure there is a principle which prohibits current taxation on a past event. For example if they pass a birth tax (theory only). They cannot apply that law to children born in the past. Likewise if they would pass a transaction tax from dollars to crypto, it could only be applied to future transactions.

Of course, and discussion of taxation is theoretical. Most governments are years behind. What is crypto currency? Are they commodities like gold, oil, land, or corn? When does a crypto transaction become a taxable event? There are man unanswered and undefined questions.

Until laws are clearly written, how can they be followed? It is not my responsibility to anticipate future regulations.

For me in 2018... reporting crypto transactions on my tax forms is a non event. I may be wrong. Governments may try to track me down. I am ok. The blockchain has a record of all the dates and amounts. So as I see it, the next move is up to the authorities who write and approve tax laws.

I wish them luck trying to catch that little pig. She is running wild in an open field. She is growing fast. She has already given birth to thousands of other little piggies. None of them look alike or act alike.

Here is today’s beauty.