It was a bitter pill to swallow, but I paid the capital gains on my Bitcoin profits every year. Now I sleep like a baby, because I know they will not knock on my door in the future.
Topic: [2019-07-26] The IRS is warning thousands of cryptocurrency holders to pay taxes - page 6. (Read 1163 times)
July 28, 2019, 11:31:30 AM
One way of pissing off the government is to avoid paying taxes and we all know paying taxes are like dying, eventually all of us will die and we know eventually the IRS will knock on your door. The excuse that regulation about Bitcoin was not clearly defined by the IRS, will not be accepted. The US made their tax stance towards Crypto currency very clear, when they officially classified it as a tradeable commodity.
It was a bitter pill to swallow, but I paid the capital gains on my Bitcoin profits every year. Now I sleep like a baby, because I know they will not knock on my door in the future.
It was a bitter pill to swallow, but I paid the capital gains on my Bitcoin profits every year. Now I sleep like a baby, because I know they will not knock on my door in the future.
July 28, 2019, 10:57:46 AM
Step by step Taxes departments started to develop and use big data. It's getting a little trendy and I can tell you that it's not a myth, they do it in my country already. So the US doesn't even need the disclosure from Coinbase anymore. Banks snitch a lot also.
For me I think it's fair to have to pay taxes, after all, we're the ones who benefit, but I don't necessarily agree with the rates applied.
In fact, more taxes I pay more I'm happy because it means I earned more
For me I think it's fair to have to pay taxes, after all, we're the ones who benefit, but I don't necessarily agree with the rates applied.
In fact, more taxes I pay more I'm happy because it means I earned more
July 28, 2019, 10:49:38 AM
In life, only two are very certain the first one is death and the other while still living is tax. Of course, that depends a lot on which country you are in and if you are well-off or not as usually moneyed people can easily find many loopholes in the law that they can exploit. As to lesser mortals just like me, I have no choice but to follow and pay what can be due to the government regardless if I am into cryptocurrency or not. This is the role of the taxman or IRS for this matter. We have to pay tax to avoid the inconvenience of being hounded by the long reach of the governmental arms...and that is regardless if we agree with the government or not.
July 27, 2019, 05:46:56 AM
Literally billions avoided by business and HNWIs in tax havens, off-shore accounts, shell companies and the like, but they come after average citizens for making a couple of thousand dollars here or there on bitcoin trading, which for some reason they feel entitled to a cut of. Land of the free.
Presumably this is linked to the several thousand accounts which Coinbase handed over to the IRS last year. Everyone should bear in mind if you have completed KYC requirements on any exchange, though, the IRS will eventually end up with your details.
Given that every crypto trade, even crypto-to-crypto trades which never touch fiat, are a taxable event, I suspect the proportion of people accurately reporting their crypto taxes is very small.
Presumably this is linked to the several thousand accounts which Coinbase handed over to the IRS last year. Everyone should bear in mind if you have completed KYC requirements on any exchange, though, the IRS will eventually end up with your details.
Given that every crypto trade, even crypto-to-crypto trades which never touch fiat, are a taxable event, I suspect the proportion of people accurately reporting their crypto taxes is very small.
July 27, 2019, 01:08:47 AM
10k+ taxpayers are receiving warning letters from the IRS. there are 3 types of letters---one is just a "soft notice" that is information-only, not alleging any misreporting. the other two are a bit more threatening. this is how one user on reddit described them:
here's the article from CNBC. an excerpt:
and also an insightful article written by a tax attorney on the subject: Crypto Investors Don't Need To Panic About IRS Letter 6174-A, Here's Why
Quote
6174: Basically means they know you have crypto
6174-A: Basically means they think you broke the law and haven't paid your taxes, and may or may not start enforcement actions on you soon
6173: Means they are sure you broke the law, and are coming after you now.
6174-A: Basically means they think you broke the law and haven't paid your taxes, and may or may not start enforcement actions on you soon
6173: Means they are sure you broke the law, and are coming after you now.
here's the article from CNBC. an excerpt:
Quote
If you own bitcoin or other cryptocurrencies, you might want to check your mailbox.
The Internal Revenue Service is in the process of sending letters to U.S. citizens who own virtual currency and potentially failed to pay the necessary taxes and to those who improperly reported taxes on digital assets last year, the agency announced Friday.
“Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties,” IRS Commissioner Chuck Rettig said in a news release. “The IRS is expanding our efforts involving virtual currency, including increased use of data analytics.”
The agency said it started sending out letters last week that by the end of August will reach 10,000 taxpayers. The list of names was obtained through “various ongoing IRS compliance efforts.” In some cases, the IRS said taxpayers could be subject to criminal prosecution.
Last year, popular trading platform Coinbase alerted 13,000 customers that it was complying with a court order to provide the IRS with information on accounts worth at least $20,000 from the years 2013 to 2015. The IRS did not say whether its mailing list was a result of the Coinbase disclosures.
The Internal Revenue Service is in the process of sending letters to U.S. citizens who own virtual currency and potentially failed to pay the necessary taxes and to those who improperly reported taxes on digital assets last year, the agency announced Friday.
“Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties,” IRS Commissioner Chuck Rettig said in a news release. “The IRS is expanding our efforts involving virtual currency, including increased use of data analytics.”
The agency said it started sending out letters last week that by the end of August will reach 10,000 taxpayers. The list of names was obtained through “various ongoing IRS compliance efforts.” In some cases, the IRS said taxpayers could be subject to criminal prosecution.
Last year, popular trading platform Coinbase alerted 13,000 customers that it was complying with a court order to provide the IRS with information on accounts worth at least $20,000 from the years 2013 to 2015. The IRS did not say whether its mailing list was a result of the Coinbase disclosures.
and also an insightful article written by a tax attorney on the subject: Crypto Investors Don't Need To Panic About IRS Letter 6174-A, Here's Why
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