[2018-03-24] IRS Reminds US Taxpayers to Report Crypto Earnings

veleten

legendary

Activity: 2016

Merit: 1106

Quote from: Qartersa on March 24, 2018, 01:17:49 PM

This reminder just goes to show they are not really able to trace people who are into Bitcoin. If they are, they could have issued tax assessments even before these people are made liable for taxes under the law. The US government, as in this case, have to admit that their laws at present are no longer at par with times. And no matter how powerful their country is, there is no way they can exactly determine for themselves the people who are doing business with cryptocurrencies. Seems to me they only want to earn money from it without even categorically classifying the nature of the business of cryptos to begin with.

they are not YET ready to trace people,but they are trying their best: https://www.chainalysis.com/
it is not only bitcoin,they are trying it with zcash and monero-the most anonymous currencies https://themerkle.com/governments-show-interest-in-firms-analyzing-monero-and-zcash-transactions/
I am sure it is just a matter of time untill they are able to connect the dots and force you to pay taxes

Qartersa

hero member

Activity: 868

Merit: 535

This reminder just goes to show they are not really able to trace people who are into Bitcoin. If they are, they could have issued tax assessments even before these people are made liable for taxes under the law. The US government, as in this case, have to admit that their laws at present are no longer at par with times. And no matter how powerful their country is, there is no way they can exactly determine for themselves the people who are doing business with cryptocurrencies. Seems to me they only want to earn money from it without even categorically classifying the nature of the business of cryptos to begin with.

Coffee135

full member

Activity: 392

Merit: 137

I agree that the legislation is arranged so it is impossible not to pay taxes even provided that bitcoin is not a sign as a currency. I've heard a lot from people that they don't pay taxes for this reason. But this will only continue until their account is verified. That is why it is very important that bitcoin be used for trading and acquire the properties of the currency.

Gotottack

hero member

Activity: 882

Merit: 506

I really do not get the laxity of US government, in general, about cryptocurrencies. They have been silent about its continued growth despite all controversies that have been going on; and now, they categorically want to tax crypto earnings? I mean, what is that supposed to say? Is that in effect legalizing cryptocurrencies all throughout the USA? We cannot just set both instances apart because they are closely dependent on each other. Tax and legal existence goes hand in hand. The taxing of a specific occupation or business is an implication that the US government legalizes cryptocurrencies. Now, does legalizing it mean that it can already be accepted as a payment system? They have to at least distinguish it before taxing any of it! Otherwise, come what may, it is the loss of all crypto investors while the US government earns a good amount during the intervening period.

BitHodler

legendary

Activity: 1526

Merit: 1179

It's impossible to escape from paying tax legally, unless you don't declare it. I see people quite often state that because Bitcoin isn't legal in their country they are exempt from paying tax, but that's obviously not the case.

Bitcoin or crypto as a whole don't necessarily need to be mentioned by name in order to be obliged to pay tax. If you look closely in your tax forms, there is always a category crypto fits in.

People should just accept it and move on. I know it doesn't feel right to pay tax over your profits and whatnot, but just get used to it. If Bitcoin at some point becomes a mainstream currency, you'll be paying tax as well.

The only case I can see people continue to hide their profits, is when they don't mess around with exchanges and all other centralized ecosystems. In this case you'll hold the advantage because no one can proof anything.

What the government can't prove, doesn't exist on paper.

fonenumba

full member

Activity: 411

Merit: 100

The Internal Revenue Service has reminded U.S. taxpayers to include any cryptocurrency income on their annual tax forms.

In a release published Friday, the IRS noted that cryptocurrency transactions are taxable like other forms of property, echoing a release issued in 2014 outlining how cryptocurrencies would be taxed.

At the time, the IRS said profits and losses on digital currency would be treated as capital gains when the currency is being used as a capital asset. Similarly, wages paid to employees in crypto are taxable, while crypto payments made to independent contractors and service providers are reported through Form 1099.

https://www.coindesk.com/irs-reminds-us-taxpayers-report-crypto-earnings/

Topic: [2018-03-24] IRS Reminds US Taxpayers to Report Crypto Earnings (Read 126 times)