The IRS is Gonna Getcha' BTC & Crypto Holders...Well, at Least 50% of You.
Our phones spy on us. So do our TVS and our Google Homes and Alexas and...basically anything with an internet connection. It's getting to the point where it would be easier to list the stuff that isn't smuggling your data to the ever elusive cloud in the headquarters of insert mega corporation or BIG GOV'T AGENCY here
Well, now you can add the IRS to that list. We've all known for a while that they watch our bank accounts and scrutinize our tax returns and hold Stingray surveillance gear (http://fortune.com/2015/10/26/irs-spying-devices/) to ensure collection of their 'pound of flesh' from each and every American citizen (regardless of where in the world you live)...
But now they want a chunk of your crypto profits too, and I'm not just talking about Coinbase customers.
Back in August The Daily Beast dug into records, and discovered that greedy ol' Uncle Sam made a deal with Swiss crypto-spy "follow the money" company, Chainalysis.
The Daily Beast said:
In a letter to the IRS, the co-founder of Chainalysis says the company has information on 25 percent of all bitcoin addresses and that it deploys millions of tags to help track and identify transactions. Here is a screenshot of a paragraph from the letter
You can read more about it here: Fortune or here The Daily Beast.
In the meantime, though it's probably too late for most of us, when creating crypto accounts, it's best to use a different screen name every time - nothing that connects to your real world identity. Same goes for phone numbers - burner phones aren't too expensive. When it comes to IRS...I have no legal advice, or legal advice for you ;-) If you're really paranoid - I guess stick to peer to peer exchanges? Definitely do not get a fake ID. Even if it's really good and convincing....
What do you think about this whole fiasco ?
My new & 100% true disclaimer: I am a fictional character with no real life investments in BTC or any kind of crypto. Everything I write or say is totally made up and bears no resemblance to any person living or dead. It's all fiction. The End.
I think the blockchain is the IRS wetdream. You mean to tell me they will publicly allow all of their transaction to be views by anyone from anywhere at any time? You don’t even need to file paper work for this information? Yep and I’m sure who ever worked that out at the IRS got a promotion!
It’s why I been advising people to check up on whatever exchanges they use and think long an hard if they “owe” any taxes. People think they will just ride under the radar for forever. That cryptocurrency will always be this crazy wild west whatever goes.
It’s a scary thought if they ever doubled the IRS budget into the kind of computer systems and software they need to be able to go after every single cent it be worth it. Let’s hope they fail to understand it be worth spending that kind of money.
Yes! I was reading it earlier - I didn't have anything intelligent to add so just left you an upvote. You realize absolutely no one wants to hear what you're saying though, right? ;-) Stop being so damn rational haha.
Luckily we know when it comes to gov't bureaucracy they are old and slow. That said, I'm sure they won't have any problems making very public examples of what can happen to those cryto-vestors who don't disclose everything.
I was reading the other day that the legal loophole not requiring one to report a trade of like things - ie BTC to Ether - was closed to now specify that it only applies to 'real property'. so technically we're supposed to report literally every crypto transaction - and if you don't keep records, you'll be taxed at whatever the current rate is.
Such a headache. Death and taxes, man :-(
After all these years its true they want to tax World of Warcraft gold then lol.
Them changing such rules then will centrally make some insane court cases to follow.
Time for us all to turn into LLC’s.
But only a certain category of LLCs!
Tax on WoW - too funny !