Topic: Could cryptocurrency holders be attacked by IRS? - page 2. (Read 3606 times)
They couldn't really be attacked, they can't just take it out of your Bitcoin holdings like they can a bank because only you own that Bitcoin. No one else does. However, they could theoretically tax it (and they might well tax Bitcoin being taken out of an exchange). It would be hard though, since you can always just anonymously transfer it to cash or hold it and trade between Bitcoin and USD Tether or something.
I am wondering. Could laws change and eventually the IRS and whatever agency combined might go and scour all the blockchains and try to tax the shit out of everybody they presume to be holding cryptocurrency?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
If you earn BTC or any other altcoin because of work, mining, speculation on exchanges, etc you have to declare it as any other income.
If you don't do that sooner or later you may get caught, simple.
If you receive bitcoins from someone and not share that with anyone, you are perfectly safe. Nobody can prove you are the owner of the address, unless you register it somewhere (exchange, store) and the registration has all your personal details. If you decide to sell your coins for fiat you can then declare it as income and you'll be completely fine. Declaring bitcoin while the laws governing it are still being made is unwise. I don't want the government to know that I'm a libertarian interested in cryptography, holding electronic currency that could be used to finance a terrorist attack
I am wondering. Could laws change and eventually the IRS and whatever agency combined might go and scour all the blockchains and try to tax the shit out of everybody they presume to be holding cryptocurrency?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
If you earn BTC or any other altcoin because of work, mining, speculation on exchanges, etc you have to declare it as any other income.
If you don't do that sooner or later you may get caught, simple.
I agree with hilariousandco here. There are only 2 ways to tax you. The first one is to tax your fiat coming from an exchange to your bank account. This is actually what you legally should add to your tax declaration.
The second one is to tax your purchases. For instance if you decided to buy a house you will have to declare it and pay due tax.
I see one way they could trace your coins that is by taking your personal data from an exchange via a subpoena and linking your exchange address to your wallet. This data might be inconclusive and I doubt it could be used in court, because an address that sends money to your exchange account doesn't have to be owned by you. It can be your employer or your friend, or your pimp
Not only they can't beyond any doubt prove which addresses you own, they can't also seize these addresses, unless you give them the keys.
The second one is to tax your purchases. For instance if you decided to buy a house you will have to declare it and pay due tax.
I see one way they could trace your coins that is by taking your personal data from an exchange via a subpoena and linking your exchange address to your wallet. This data might be inconclusive and I doubt it could be used in court, because an address that sends money to your exchange account doesn't have to be owned by you. It can be your employer or your friend, or your pimp
Not only they can't beyond any doubt prove which addresses you own, they can't also seize these addresses, unless you give them the keys.
if they suspect an evasion coming from you they act as intended in these cases, and confiscate your assets, but usually if you keep your money i crypto, it's almost impossible for them to find out
talking about monero zcash, they are untraceable, if you keep your business private with these coins, you are safe, some people are exchanging their bitcoin with coins, because they offer better protection against the government
Short answer, yes.
Long answer, if you have money the IRS wants it b
Longer answer, Bitcoin CAN NOT be taken from you easily like your bank account. They need a rubber hose or guns to do it.
They can't take your BTC but if they conclude you received and held BTC rom NiceHash mining rewards lets say. Could they try to tax you in Fiat?
NEM/XEM with their full lack of privacy features now scares me. It would be nuts to hold a measley 4k USD worth of Crypto now that appreciates to 100k and lands me loads of trouble
also...how they conclude what you said?? bitcoin is not directly taxable(i don't think pool perators are paying any tax at present), only the gain from it are, afaik, but this could have been changed over time in the USA
what make sense is that everything that go in the exchange will be watched by IRS, especially coinbase, if you stay aware from the exchange you don't need to worry
talking about monero zcash, they are untraceable, if you keep your business private with these coins, you are safe, some people are exchanging their bitcoin with coins, because they offer better protection against the government
I am wondering. Could laws change and eventually the IRS and whatever agency combined might go and scour all the blockchains and try to tax the shit out of everybody they presume to be holding cryptocurrency?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
Short answer, yes.
Long answer, if you have money the IRS wants it b
Longer answer, Bitcoin CAN NOT be taken from you easily like your bank account. They need a rubber hose or guns to do it.
They can't take your BTC but if they conclude you received and held BTC rom NiceHash mining rewards lets say. Could they try to tax you in Fiat?
NEM/XEM with their full lack of privacy features now scares me. It would be nuts to hold a measley 4k USD worth of Crypto now that appreciates to 100k and lands me loads of trouble
also...how they conclude what you said?? bitcoin is not directly taxable(i don't think pool perators are paying any tax at present), only the gain from it are, afaik, but this could have been changed over time in the USA
what make sense is that everything that go in the exchange will be watched by IRS, especially coinbase, if you stay aware from the exchange you don't need to worry
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I am wondering. Could laws change and eventually the IRS and whatever agency combined might go and scour all the blockchains and try to tax the shit out of everybody they presume to be holding cryptocurrency?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
Why would laws need to change? If you're not paying taxes on what you should legally owe then they can come after you in any which way they can. They might not be at the moment 'scouring blockchains' but they probably will at some point in the future, especially when they realise massive amounts of people aren't declaring their crytpo earnings as is what already seems be happening with Coinbase. You might be able to fly under the radar or avoid detection by using mixing services or masking the funds you own etc but that's not where they'll sting you. It's usually when you exchange the coins for cash that they'll want their cut and if you have a lot of money in your bank account that you can't account for then you'll have a lot of explaining to do.
https://www.forbes.com/sites/kellyphillipserb/2017/01/14/coinbase-to-irs-on-efforts-to-id-bitcoin-customers-we-have-a-suggestion/#5188add65f55
I am wondering. Could laws change and eventually the IRS and whatever agency combined might go and scour all the blockchains and try to tax the shit out of everybody they presume to be holding cryptocurrency?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
Short answer, yes.
Long answer, if you have money the IRS wants it b
Longer answer, Bitcoin CAN NOT be taken from you easily like your bank account. They need a rubber hose or guns to do it.
They can't take your BTC but if they conclude you received and held BTC rom NiceHash mining rewards lets say. Could they try to tax you in Fiat?
NEM/XEM with their full lack of privacy features now scares me. It would be nuts to hold a measley 4k USD worth of Crypto now that appreciates to 100k and lands me loads of trouble
I am wondering. Could laws change and eventually the IRS and whatever agency combined might go and scour all the blockchains and try to tax the shit out of everybody they presume to be holding cryptocurrency?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
Short answer, yes.
Long answer, if you have money the IRS wants it b
Longer answer, Bitcoin CAN NOT be taken from you easily like your bank account. They need a rubber hose or guns to do it.
I am wondering. Could laws change and eventually the IRS and whatever agency combined might go and scour all the blockchains and try to tax the shit out of everybody they presume to be holding cryptocurrency?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
Privacy based coins that actually work would be safe but what about BTC its self without the use of those mixing services, current ETH, and XEM for example that has no intentions for privacy at all?
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