Since cryptocurrency doesn't go by account numbers linked by your personal number. But they will try to get people to consent to resulting USD credits that show up in banking systems and call them income. But it is energy not money...
@virtualgrowth my personal opinions on whether or not STEEM mined should be taxed aside, the Internal Revenue Service guidance issued on March 25, 2014 (Internal Revenue Notice IR-2014-36 IRS Virtual Currency Guidance) already laid out regulatory guidance that virtual convertible currency (cryptocurrencies) are considered to be property and are subject to the general tax rules associated with property. Also, Title 26 Internal Revenue Code specifies the income subject to the tax code is the taxpayer's worldwide income. There are some extensive sections on the taxation of property, receiving compensation in the form of property and how to value it for tax purposes.
Unfortunately legal precedent in the US Tax courts would disagree with your position.
@everittmickey Thanks for checking out the article and the question.
If the question of enforcement feasibility is focused on whether or not they have legal jurisdiction, the answer is they do have jurisdiction and moreover, the government body responsible for their oversight (TIGTA) released two scathing reports in September about their negligence with enforcement actions related to illegal transactions and illegal tax evasion with cryptocurrencies. This is what caused the John Doe record demand with Coinbase.
If the question of enforcement is do they have the resources, the answer is not really, but they will make this a priority. In response to the three general concerns raised by the auditors, the IRS couched every reply with a limited resources caveat. I think crypto has become the flavor of the day for enforcement for a number of reasons which would be an excellent subject for a later topic, but not really relevant here.
How would they enforce this action? By systematically hitting the crypto exchanges (on ramps and off ramps) with record demands. In my earlier piece US Tax Considerations – IRS Warned by TIGTA to Focus on Illegal Use of Virtual Currency | IRS Demands Coinbase Records, I specifically laid out how I think the enforcement actions will proceed. In it I speculated Steemit will probably get a record demand fro the IRS sometime next year after Poloniex and some other exchanges receive theirs and comply in various ways (I suspect they will).
Youre welcome
Back in the day...it was said.
"Never give an order that you KNOW won't be obeyed.".
just saying.
Cruz said he'd eliminate the IRS
Will Trump?
Since cryptocurrency doesn't go by account numbers linked by your personal number. But they will try to get people to consent to resulting USD credits that show up in banking systems and call them income. But it is energy not money...
@virtualgrowth my personal opinions on whether or not STEEM mined should be taxed aside, the Internal Revenue Service guidance issued on March 25, 2014 (Internal Revenue Notice IR-2014-36 IRS Virtual Currency Guidance) already laid out regulatory guidance that virtual convertible currency (cryptocurrencies) are considered to be property and are subject to the general tax rules associated with property. Also, Title 26 Internal Revenue Code specifies the income subject to the tax code is the taxpayer's worldwide income. There are some extensive sections on the taxation of property, receiving compensation in the form of property and how to value it for tax purposes.
Unfortunately legal precedent in the US Tax courts would disagree with your position.
Of course. I have no need to continue further.
@everittmickey Thanks for checking out the article and the question.
If the question of enforcement feasibility is focused on whether or not they have legal jurisdiction, the answer is they do have jurisdiction and moreover, the government body responsible for their oversight (TIGTA) released two scathing reports in September about their negligence with enforcement actions related to illegal transactions and illegal tax evasion with cryptocurrencies. This is what caused the John Doe record demand with Coinbase.
If the question of enforcement is do they have the resources, the answer is not really, but they will make this a priority. In response to the three general concerns raised by the auditors, the IRS couched every reply with a limited resources caveat. I think crypto has become the flavor of the day for enforcement for a number of reasons which would be an excellent subject for a later topic, but not really relevant here.
How would they enforce this action? By systematically hitting the crypto exchanges (on ramps and off ramps) with record demands. In my earlier piece US Tax Considerations – IRS Warned by TIGTA to Focus on Illegal Use of Virtual Currency | IRS Demands Coinbase Records, I specifically laid out how I think the enforcement actions will proceed. In it I speculated Steemit will probably get a record demand fro the IRS sometime next year after Poloniex and some other exchanges receive theirs and comply in various ways (I suspect they will).
I hope that answers your question.
Youre welcome
Back in the day...it was said.
"Never give an order that you KNOW won't be obeyed.".
just saying.
Cruz said he'd eliminate the IRS
Will Trump?
I've been audited twice by the IRS and it's been a pain in the behind. But each time they were wrong and we did our taxes correctly.
I've been audited once..
Same thing..you're right.
The auditor was a moron.