Topic: Biden administration unveils (proposes) new crypto tax reporting rules - page 2. (Read 255 times)

not even Monero can dodge the IRS if they start suspecting someone of not paying taxes on their crypto. what the IRS does is comes up with a "number" and says to pay it. if you disagree you have to appeal but you might not win your appeal so you're basically guilty until proven innocent. i hope that doesn't happen to people but i think probably it does sometimes not just with crypto but with other things too. leaving the USA doesn't do anything. as long as you are still an american citizen you're still subject to the IRS. the only way to get out of that is to relinquish american citizenship which i'm not sure how easy that is but you have to have money to do it. because why would another country want you if you are dead broke?

just like with internet sports gambling and online poker, no one wants to be doing business with american citizens. many sportsbooks and online poker sites stopped accepting americans. same with crypto.

no one wants the scrutiny of the IRS on them. because an audit won't just stop with investigating how much coffee they bought at starbucks using their bitcoin debit card. it's going to go into every thing on their entire tax return and income and everything so they can try and get as much out of that taxpayer as possible. just answering "YES" on the tax return about if you used crypto in the past year well you might as well be answering the question "Would you like for us to make an extra consideration to audit you?"

According to the FATF rules, the KYC procedure must be completed for the sender and recipient of cryptocurrencies in the amount of more than $1,000. And until the recipient is unknown, the exchange should not allow such a transaction. We only need to prepare for the worst, because soon such restrictions will apply first to all large exchanges and then to medium and small ones. Nobody wants criminal charges.

You are talking about USA cryptocurrency exchanges, which we find that their number is decreasing with the passage of time, as many of these exchanges are moving towards other countries or prohibiting and restricting access to their services for citizens from the United States. Most citizens comply with the Internal Revenue Service (IRS), and I think that makes them more cautious in opening new deals (trading), which may positively affect the price of Bitcoin, as they will turn to HODLING.

Russia introduced a mandatory tax on crypto a few years ago. What of it? Nothing succeeded. Most of those who have crypto or use it on a permanent basis are still in the "gray zone" without any obligations to the state in the form of tax deductions.
Until now, there are no tools that would allow to establish the beneficiaries of transactions. Therefore, let all these laws go to one place and very far away.
Yes, there is some rationality about investing in VPN. I am convinced that the dawn of this direction will soon begin again, as managers increasingly penetrate into the private lives of people, which is unacceptable.

Well, I guess it's high time that everyone should invest in VPN or Monero or anything to dodge IRS because what I see there is not just an invasion of privacy but also the restriction of sovereignty that crypto offers. I don't know about other countries following suit to this BS but one thing is for sure, this will be problematic for everyone in the crypto space not just those in the US. Or if worse things come, going abroad is still an option for those in the US.

It's not a bad thing if you don't mind not losing your data to the government, I guess it's not especially if you have a Driver's license and have been employed. But wouldn't this defeat the point of having a crypto in the first place? That the government doesn't have any hands on the table to mess with your finances?

IIRC there was a discussion about this where the government ask for complete trading history, this kind rule is like a joke because the government thought if every user are hold and use cryptos in centralized exchanges. If we're using non custodial wallet, this will be really hard to report if we use it for many thing e.g. lending, gambling, donation, pay subscription etc.

I don't think many people still remember with every transactions they made before.

I think most people are probably properly reporting their crypto sales at this point. It’s pretty easy to do with exchanges being linked to most tax software. I don’t think this is a bad thing. Small purchases will be a pain in the ass but I don’t think this will be widely enforced immediately. They’re just laying the groundwork so they can arrest offenders when the time comes.

maybe the government should just require bitcoin miners in that country to shave off a certain percent of all mined bitcoin transactions and send it to them. that way people wouldn't have to worry about all this hassle of owing crypto taxes. kind of like how merchants collect sales tax from the customer and forward it on to the IRS.

That is a proposal for the moment but it might become a reality. If that happens then DEX and Web3 wallets providers would ask their customers to pass KYC. No more anoymity  and zero privacy in the making. The worst would be that every country would follow the US if this proposal becomes a law.

https://finance.yahoo.com/news/1-biden-administration-unveils-crypto-151112853.html

Cryptocurrency brokers, including exchanges and payment processors, would have to report new information on users' sales and exchanges of digital assets to the Internal Revenue Service (IRS) under a proposed U.S. Treasury Department rule published on Friday.

The rule is part of a broader push by Congress and regulatory authorities to crack down on crypto users who may be failing to pay their taxes.


in other words, even if you just did a small transaction they want to know so they can do surveillance and maybe audit you. being audited is probably no fun since you're kind of guilty until proven innocent they might even send you a bill in the mail and the only way to get out of it is to go through a huge beauracracy and hope someone helps.