[2017-08-29] It Looks Like New Bitcoin Millionaires Are Avoiding the IRS - page 2.

cr1776

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Quote from: soothaa on August 29, 2017, 09:19:52 AM

I am really hoping Monero takes off way more. That will help immensely in avoiding paying the government their bribes. Seriously, they provide NOTHING of value for the crypto markets and want a cut when your high risk pays off? Unbelievable.

Agreed with that too in principle (nothing of value), but for most people the risk (jail time) isn't worth any potential gain. The leeches will get their blood to buy people's votes and unless you want to follow the Roger Ver route and renounce your citizenship (from the US in his case), you have little choice if you want to be compliant. And "New Bitcoin Millionaires" probably will want to be able to enjoy their gains and to do so will need to follow the law.

Just like people were over-confident in the security of TOR and were burned by either misconfigured servers, emails, honeypots, KYC/AML etc, there will be plenty of times that misusing the anonymity of Monero, mixers, Dark Wallet and the like will leak information that will enable the authorities to follow your path of transactions. And then you'll be screwed.

soothaa

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I am really hoping Monero takes off way more. That will help immensely in avoiding paying the government their bribes. Seriously, they provide NOTHING of value for the crypto markets and want a cut when your high risk pays off? Unbelievable.

cr1776

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Quote from: TraderTimm on August 29, 2017, 08:32:02 AM

Its impossible to engage the legacy banking system and not leave a trail. Just pay the 13 - 15% on long-term capital gains and be done with it. (Most people have held for more than a year.)

I don't understand why someone would risk potential fines and audits or even jail by not paying. Whatever your stance on taxation is, you're not going to change the system from inside a jail cell.

Agreed.

One open question is the impact of the BCC fork since it had/has some value. The IRS hasn't given guidance yet as far as I am aware as to how to handle it.

When do you pay taxes:
1. At the fork?
2. Converting it from BCC to BTC?
3. Selling any resulting BTC?

Probably #2, but hopefully #3.

TraderTimm

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Its impossible to engage the legacy banking system and not leave a trail. Just pay the 13 - 15% on long-term capital gains and be done with it. (Most people have held for more than a year.)

I don't understand why someone would risk potential fines and audits or even jail by not paying. Whatever your stance on taxation is, you're not going to change the system from inside a jail cell.

Baofeng

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Quote from: Xavofat on August 29, 2017, 04:22:51 AM

It's ridiculous. People who use BTC should not attempt to evade tax.

It's obvious that the IRS (and other governments) are only going to get better at catching BTC tax evaders with time. The more significant BTC gets in ordinary society, the more it's going to be tracked and regulated.

Unless they're extremely clever, they shouldn't even bother trying. They're only going to get burned.

I don't think the people are intentionally hiding in bitcoin because they don't want to pay taxes. Perhaps this the reason why IRS has reportedly acquiring software to track down individual not paying taxes if I'm not mistaken.

If people would really want to evade they are better off with Monero, anonymous and IRS would have a hard time chasing them. But as what I believed, we are into bitcoin not to evade but to profit. But I guess everything that involves big money movement IRS is there. LOL.

Xavofat

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Did you see that ludicrous display last night?

It's ridiculous. People who use BTC should not attempt to evade tax.

It's obvious that the IRS (and other governments) are only going to get better at catching BTC tax evaders with time. The more significant BTC gets in ordinary society, the more it's going to be tracked and regulated.

Unless they're extremely clever, they shouldn't even bother trying. They're only going to get burned.

bbc.reporter

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There will come a new trend of would be tax evaders from the new millioniares who speculated in bitcoin and all the other cryptocoins. But the IRS have also started tracking down bitcoiners, thanks to the help of Chainalysis as mentioned here https://news.bitcoin.com/irs-crackdown-tracking-bitcoiners-with-chainalysis/

Does this present a new value proposition for anonymous cryptcoins in the coming future? I speculate it will.

As Bitcoin continues its humongous run, soaring to new highs again this month, more and more investors are flocking to the cryptocurrency. Get-rich-quick artists and even mainstream investors are riveted by Bitcoin's 353% year-to-date return and the countless stories of early investors strutting around as newly-minted millionaires.

But despite the colossal gains and surge in new-fangled Bitcoin millionaires, few investors seem to be reporting their cryptocurrency windfalls on their U.S. tax returns. And experts warn this could mean huge penalties down the line.

Read the whole article https://www.thestreet.com/story/14285109/1/bitcoin-tax-dodgers-on-collision-course-with-the-irs.html

Topic: [2017-08-29] It Looks Like New Bitcoin Millionaires Are Avoiding the IRS - page 2. (Read 9844 times)