Topic: 3-party payment processors need to report transactions more than $600 to the IRS (Read 121 times)

No paradox, stupidity at its maximum fueled by stupid socialists!

They always compare wealth with income tax when tax is paid for the income not wealth.
How would you feel if you had 10 bitcoins and you would have to pay 10% tax each year even if you wouldn't sell a dime? Each year you would have to sell 1 BTC or in the case of last year, even more, to pay tax on your wealth, would you agree with this stupid thing?
Let's assume I paint stuff and people price my paintings at $100k each, I paint 10 of them but nobody buys them, should I pay 100k out of my own pocket for my wealth?
   

At the same time ProPublica investigation "Secret IRS Files":
"ProPublica has obtained a vast cache of IRS information showing how billionaires like Jeff Bezos, Elon Musk and Warren Buffett pay little in income tax compared to their massive wealth — sometimes, even nothing."
http://p53lf57qovyuvwsc6xnrppyply3vtqm7l6pcobkmyqsiofyeznfu5uqd.onion/series/the-secret-irs-files

Anyway… Paradox.

Monero can only help by making tracing more difficult for everyone involved.  Since Blockchain Analysis tools are now around, it is much slower and resource-demanding to have an authority look after someone who is using Monero than it is to look after someone who is using Bitcoin without Coin Join, Coin Control etc.

As long as these transactions happen on-chain and there is a clear record somewhere out there of someone ordering stuff to a specific address, Monero definitely does not help either.  The solution would probably be exchanging Monero for fiat face to face through websites such as Local Monero or software such as Bisq and then using the cash for local, offline shopping.. but it comes on the other hand with its own cons, the top one probably being personal safety.

Using the Internet leaves traces no matter what you try and do.  With that being said, you have to thoroughly think every thing that you do ten times before actually doing it if you want to make sure chances of messing up are low enough to be worth it.

I for sure do not agree with what the IRS does and I also noticed financial authorities are starting to only be increasingly aggressive and restrictive all over the world.  Limits over limits, all for the supposed safety of a nation against terrorism and money laundering.  The same excuse nobody seems to get tired of.

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Regards,
PrivacyG

In that hypothetical scenario of total control, he couldn't get away with it, you have receipts you have contracts with suppliers, you could theoretically put a few besides and say destroyed/stolen merchandise but that thing will never get you long and in case someone looks at your situation where you have 1 of each stolen each day it's just hilarious for the one reading.

Again, we're talking about total control where every penny is counted and every receipt gets filled by the IRS.


Swish  , and police don't give a damn if you get an escort, just don't be stupid and go to a brothel, procuring is the thing they are looking after, pimps and traffickers, as long as you stay away from those deals and you only pick up independent escorts nobody will bother you.Worst-case scenario you get a fine that is half the 4 hours rate and that's it.
Those activists think that if there are no more girls on the sidewalks prostitution is declining, like yeah, lol, when you have tens of closed groups discussing and rating escorts from all Scandinavia any claim like that is ridiculous.

I laughed at your post, partly because you are so good at arguing. I think you've got a point here:


What happens is that it is a hypothetical scenario that I doubt will ever happen, and I don't think that the only thing you will be able to buy will be drugs and weapons. Just as a shopkeeper today charges you in cash and does not declare it, you could charge for many things other than drugs and weapons to escape the clutches of the state.

That way, the person who sells weapons and collects the money in coins will be able to spend it on other things. Before Bitcoin appeared, there was already speculation about the disappearance of cash and the future control of transactions. And then came Bitcoin and then many cryptos. What I am saying is that I believe that human intelligence, especially when there is a lot of money at stake, will come up with something to escape the clutches of the state.


I don't know about other countries but in Sweden it is legal to offer sexual services but illegal to buy them, just as it is illegal to operate a brothel.

I don't know, you tell me, how do you think prostitution, drugs, and weapons are paid for in Sweden?

It doesn't matter if you already have them.
If you will use it you will have to come clean and pay taxes, otherwise, you will be tracked. Of course, if you're buying drugs and spending money on escorts that's a different question but poeple were not going to talk about that even if they would want to pay taxes.

The moment you buy anything you will be tracked, car, house, rent, it doesn't matter if you can hide the transaction you can't hide the assets you've purchased, you can hide your identity when you order pizza online but when the IRS finds PizzaHut has delivered 1000 times to your address and you have zero income some might wonder where you got those $30k for pizzas. If you want to live in a tent and buy only food and soda cans from a machine yeah, it might work, but a life like that to avoid taxes? Does it make sense to you?

Also the same for your drug/arms dealer, right now they get away since the so-called control is nowhere near your absolute scenario but if it's going to be like that, what is he going to buy with the monero he received from you? There are going to be food dealers on the dark web? 
At one point he will have to enter the circle of total control if that exists, and good luck from that point on.


There are three countries that are almost cashless in Europe, Sweden which is in a league on its own, Finland, and Denmark. Prostitution is legal in all of them. On the other side of the globe, Singapore also has no clear laws against it, so ....I wonder who you've read about.
And besides that if you constantly exchange your own currency to euros or USD at one point it's going to trigger a call from the IRS equivalent, you constantly buy euros, you don't travel outside and you have no euros in your bank account, it takes three clicks to track such a profile.

I think we were thinking about two different things. I was thinking more about illegal things. What I'm saying is that if you even eliminate all cash and the central banks and authorities get to control absolutely all fiat transactions, that's not going to stop the arms dealers, drug dealers etc. If you buy on the Deep Web and send it to a PO box, the shipper doesn't know anything about you.

Not only this type of activities, but also other more "honest" activities, such as if I do a job for you via internet, you pay me in Monero and I do not declare it.


I don't understand you. We are talking about a hypothetical scenario in the future where all fiat transactions are absolutely controlled by governments, no? That won't happen from today to tomorrow. As of today there are plenty of people holding Bitcoin or non-kyc Monero. In the transition, alternative forms of payment that escape the government will take hold, and those who are interested in escaping its clutches will use these means of payment.

Also, there are sure to be ways to obscure fiat transactions. Fraud in big business is done via intenational transactions and corporate schemes. For the average Joe this does not work, but you never know if there will be a foreign country that can issue a credit card that does not answer to the tax authorities of their country.

Speaking from memory, I remember reading that in countries where cash has been practically eliminated, transactions for drugs, prostitution, etc., are made in foreign currency, dollars or euros, and cryptocurrencies.

The fact is that no matter how much the government wants to control, there will always be an alternative for those who want to escape from the government.

Many other countries are following the same route to have control over their citizen's finances. In my country, if you purchase anything over 680 USD, you have to share your PAN card details to the seller and the seller needs to report it to the tax authority during their monthly tax filing. Don't get shocked to see "Monthly" here. In my country, a business has to file their taxes monthly. So it's an attempt from the government to control the finances and to find the person who are not paying required amount of taxes.

Cryptocurrency definitely provides an easy alternative here but only if you are getting such cryptos from an international supplier who doesn't report to your government. Or else, you need to have a mining operation of your own. Otherwise, all centralized crypto exchanges in my country, reports every single transactions to the government.

What's happening in US, is not out of the box. Rather all governments are taking such drastic steps and harassing common people!

I love how the partisan media is spinning this, MSNBC said nothing to worry about, you won't have to do anything but at the end they halfheartedly say, you do need to file for them, Fox on the other side is merciless.
One author tried to say something and it ended so bad..


And how can you avoid this with Monero?
The moment you purchase something, you hire somebody, you buy online, your partner has your data, do you think buying a car with Monero would allow you to avoid taxes? And, how are you going to get those coins in the first place, you need cash for it, which is already documented and you've paid your taxes on that income.
Coins can be used to hide your transactions when you don't want poeple to trace that payment or link it to you, but it's not going to shit about allowing you to avoid taxes.

Gold coins? Common! 60$ is 50mm3, ~ one cube of 4 mm on all sides, do you feel comfortable testing that each time and measuring it?
One guy scamming you once and you're already better paying taxes.

The tax decision targets these companies more than individuals, as they are turning into central banks, especially with the amount of cash they own, the resources and data they have, which makes their influence on individuals more than governments.
I did not review the decision in detail, but it seems that the government has begun to move towards multinational companies or those operating in several countries in order to control the money supply and pay more taxes.

This is one more step by the public authorities in the attempt to control all financial transactions. The use of cash has been declining markedly over the past few decades, and electronic payment alternatives initially looked like they might help control it all. But there will always be a loophole of freedom, either by using Bitcoin and taking maximum care of privacy, or currencies such as Monero, or even if cash is eliminated altogether, gold coins and other metals could be used again for face-to-face transactions.

The public authorities would like to be able to control all the payments and all the money, but they are not going to be able to do so.

The new ruling specifically targets businesses that accept payments through Venmo and other that don't report income on their.
Third-party payment processors as Venmo, PayPal and the Cash App will now have to report transactions totaling more than $600 to the IRS.

Previously, these services were required to submit 1099-K forms^[1] to users if their total income exceeded $20,000 or they had more than 200 transactions per year.





Source ---> https://www.dailymail.co.uk/news/article-10372327/Venmo-PayPal-Cash-App-report-transactions-totaling-600-IRS.html


[1] https://www.irs.gov/businesses/understanding-your-form-1099-k