Weird little story. They're willing to attract the ire of the most vindictive government agency in the world for the sake of mad gainz that may never arrive?
They're already withdrawing crypto and have offered no reason why they can't withdraw more. If I were the IRS I'd nail them to the wall.
In future there are going to be many more cases like this. The 'I took a risk so I shouldn't have to pay tax' or 'it's on the internet so it shouldn't be taxed' crew are going to get some harsh lessons in The Man not giving a fuck about what you would like to happen vs what actually will happen.
Topic: Couple was forcibly ask by IRS to sell their crypto to pay their liabilities - page 3. (Read 898 times)
June 24, 2020, 11:04:44 AM
June 24, 2020, 10:22:40 AM
In summary:
- Alexander and Laura Strashny filed income tax return due in 2017, but unable to pay
- they sent IRS letters proposing to pay the liability in iinstallments over a period of 6 years
- IRS received the proposal recorded it and put in in pending status
- As of December 2018, the outstanding liability + interest exceeded $1 million
- IRS sent petition notice "Intent to Seize Your Assets" and Notice of Your Right to a Hearing.
- Petitioners timely requested a CDPhearing, expressinginterest in an installment agreement (IA) and attaching a copyof their previously submitted Forms 433-A and 9465. They did notcheck the boxindicating thattheycould not pay the balance, and they did notdispute theirunderlyingliability for 2017.
- SO review the case and saw that they have a huge cryptocurrency investment
- SO eceived from petitioners’ repre-sentative a copy of their 2018 tax return, which reported wages exceeding $200,000, and investment statements showing cryptocurrency assets valued over$7 million. During the conference the SO noted that petitioners were currently
- 4-[*4] withdrawing$19,000 per month from their cryptocurrency account, and she asked why they could not liquidate or borrow against those assets in order to discharge their tax liabilityin full.
- Lawyers for the petitioners argue that they are unable to draw on their cryptocurrency account to pay their liability.
- On June 25, 2019, the IRS issued a notice of determination sustaining the proposed levy, rejecting petitioners’ request for an IA, and stating that “[l]evyaction is permitted 30 daysafter the rejection.
https://www.ustaxcourt.gov/USTCInOP/OpinionViewer.aspx?ID=12258
There's no denying that the petitioners have money to pay to settled their tax liabilities. But they can't withdraw it in a timely manner, maybe they are waiting for the price to go up and make profit to at least lessen the damage. What are your thoughts on this?
Are you willing to sell your crypto to pay our debts or just go on settle it in months or years?
- Alexander and Laura Strashny filed income tax return due in 2017, but unable to pay
- they sent IRS letters proposing to pay the liability in iinstallments over a period of 6 years
- IRS received the proposal recorded it and put in in pending status
- As of December 2018, the outstanding liability + interest exceeded $1 million
- IRS sent petition notice "Intent to Seize Your Assets" and Notice of Your Right to a Hearing.
- Petitioners timely requested a CDPhearing, expressinginterest in an installment agreement (IA) and attaching a copyof their previously submitted Forms 433-A and 9465. They did notcheck the boxindicating thattheycould not pay the balance, and they did notdispute theirunderlyingliability for 2017.
- SO review the case and saw that they have a huge cryptocurrency investment
- SO eceived from petitioners’ repre-sentative a copy of their 2018 tax return, which reported wages exceeding $200,000, and investment statements showing cryptocurrency assets valued over$7 million. During the conference the SO noted that petitioners were currently
- 4-[*4] withdrawing$19,000 per month from their cryptocurrency account, and she asked why they could not liquidate or borrow against those assets in order to discharge their tax liabilityin full.
- Lawyers for the petitioners argue that they are unable to draw on their cryptocurrency account to pay their liability.
- On June 25, 2019, the IRS issued a notice of determination sustaining the proposed levy, rejecting petitioners’ request for an IA, and stating that “[l]evyaction is permitted 30 daysafter the rejection.
https://www.ustaxcourt.gov/USTCInOP/OpinionViewer.aspx?ID=12258
There's no denying that the petitioners have money to pay to settled their tax liabilities. But they can't withdraw it in a timely manner, maybe they are waiting for the price to go up and make profit to at least lessen the damage. What are your thoughts on this?
Are you willing to sell your crypto to pay our debts or just go on settle it in months or years?
The question you ask yourself is "Is it worth it to go in to debt and have a bad credit score because I simply want to keep my cryptocurrency, or avoid all that and pay my debts down". Seems like a pretty obvious choice to me.
June 24, 2020, 09:22:47 AM
Cryptocurrency is already under the scanner of government agencies. They have associated it with everything which is illegal.
After reading the story of this couple I am in the conclusion that they are wrong on their part. I have no doubt about it. They should immediately do something to repay their tax.
If they need to sell their crypto assets then they should otherwise, the tax agency would suggest the government that cryptocurrency is a new illegal way for them to abet tax.
It does sound silly but, it will happen for sure.
After reading the story of this couple I am in the conclusion that they are wrong on their part. I have no doubt about it. They should immediately do something to repay their tax.
If they need to sell their crypto assets then they should otherwise, the tax agency would suggest the government that cryptocurrency is a new illegal way for them to abet tax.
It does sound silly but, it will happen for sure.
They should do that and they should've done that in the first place because if I'm not mistaken, authorities know that they have a huge cryptocurrency asset which got revealed when it got reviewed again.
They are probably waiting for the price to pump but they probably predicted it incorrectly to the point that the due date to pay their liability came. I don't know how big this would get but it's still trouble for them.
June 21, 2020, 05:12:41 AM
Quote
There's no denying that the petitioners have money to pay to settled their tax liabilities. But they can't withdraw it in a timely manner, maybe they are waiting for the price to go up and make profit to at least lessen the damage. What are your thoughts on this?
Are you willing to sell your crypto to pay our debts or just go on settle it in months or years?
Are you willing to sell your crypto to pay our debts or just go on settle it in months or years?
Probably that's the reason why IRS declined their Installment payment requests. If someone has $7 million but still asking for favors from the government agency, doesn't really show a good picture. Liabilities of any sort is not good for anybody's financial health and when the liability is from a government agency like IRS, it wise to pay up to avoid all future hassles.
If it was for me, I would have paid the liability to IRS to stay safe and out of the scanner. IRS can bring immense level of hassles so it is wise to keep them at bay!
June 21, 2020, 02:42:32 AM
This is such a weird case.
I think the couple have probable ulterior motives for doing such things. Perhaps bringing their crypto assets under the eyes of the law would allow the accusers to see that they could be paid in full. The very reason they consider this case worth fighting, probably means they owe more than the accuser could force them to pay, and they likely know that crypto assets can't be seized so easily without your consent. Their lawyer expenses must be huge anyway.
This is a crazy case, but I wouldn't consider it setting any precedent that would be worth looking back to, unless of course it moves to a higher court. IRS tends to avoid setting precedents afaik. Guidelines and regulations vary from state to state and the landscape in the U.S. is generally very fractured.
I think the couple have probable ulterior motives for doing such things. Perhaps bringing their crypto assets under the eyes of the law would allow the accusers to see that they could be paid in full. The very reason they consider this case worth fighting, probably means they owe more than the accuser could force them to pay, and they likely know that crypto assets can't be seized so easily without your consent. Their lawyer expenses must be huge anyway.
This is a crazy case, but I wouldn't consider it setting any precedent that would be worth looking back to, unless of course it moves to a higher court. IRS tends to avoid setting precedents afaik. Guidelines and regulations vary from state to state and the landscape in the U.S. is generally very fractured.
June 21, 2020, 02:14:46 AM
In summary:
- Alexander and Laura Strashny filed income tax return due in 2017, but unable to pay
- they sent IRS letters proposing to pay the liability in iinstallments over a period of 6 years
- IRS received the proposal recorded it and put in in pending status
- As of December 2018, the outstanding liability + interest exceeded $1 million
- IRS sent petition notice "Intent to Seize Your Assets" and Notice of Your Right to a Hearing.
- Petitioners timely requested a CDPhearing, expressinginterest in an installment agreement (IA) and attaching a copyof their previously submitted Forms 433-A and 9465. They did notcheck the boxindicating thattheycould not pay the balance, and they did notdispute theirunderlyingliability for 2017.
- SO review the case and saw that they have a huge cryptocurrency investment
- SO eceived from petitioners’ repre-sentative a copy of their 2018 tax return, which reported wages exceeding $200,000, and investment statements showing cryptocurrency assets valued over$7 million. During the conference the SO noted that petitioners were currently
- 4-[*4] withdrawing$19,000 per month from their cryptocurrency account, and she asked why they could not liquidate or borrow against those assets in order to discharge their tax liabilityin full.
- Lawyers for the petitioners argue that they are unable to draw on their cryptocurrency account to pay their liability.
- On June 25, 2019, the IRS issued a notice of determination sustaining the proposed levy, rejecting petitioners’ request for an IA, and stating that “[l]evyaction is permitted 30 daysafter the rejection.
https://www.ustaxcourt.gov/USTCInOP/OpinionViewer.aspx?ID=12258
There's no denying that the petitioners have money to pay to settled their tax liabilities. But they can't withdraw it in a timely manner, maybe they are waiting for the price to go up and make profit to at least lessen the damage. What are your thoughts on this?
Are you willing to sell your crypto to pay our debts or just go on settle it in months or years?
- Alexander and Laura Strashny filed income tax return due in 2017, but unable to pay
- they sent IRS letters proposing to pay the liability in iinstallments over a period of 6 years
- IRS received the proposal recorded it and put in in pending status
- As of December 2018, the outstanding liability + interest exceeded $1 million
- IRS sent petition notice "Intent to Seize Your Assets" and Notice of Your Right to a Hearing.
- Petitioners timely requested a CDPhearing, expressinginterest in an installment agreement (IA) and attaching a copyof their previously submitted Forms 433-A and 9465. They did notcheck the boxindicating thattheycould not pay the balance, and they did notdispute theirunderlyingliability for 2017.
- SO review the case and saw that they have a huge cryptocurrency investment
- SO eceived from petitioners’ repre-sentative a copy of their 2018 tax return, which reported wages exceeding $200,000, and investment statements showing cryptocurrency assets valued over$7 million. During the conference the SO noted that petitioners were currently
- 4-[*4] withdrawing$19,000 per month from their cryptocurrency account, and she asked why they could not liquidate or borrow against those assets in order to discharge their tax liabilityin full.
- Lawyers for the petitioners argue that they are unable to draw on their cryptocurrency account to pay their liability.
- On June 25, 2019, the IRS issued a notice of determination sustaining the proposed levy, rejecting petitioners’ request for an IA, and stating that “[l]evyaction is permitted 30 daysafter the rejection.
https://www.ustaxcourt.gov/USTCInOP/OpinionViewer.aspx?ID=12258
There's no denying that the petitioners have money to pay to settled their tax liabilities. But they can't withdraw it in a timely manner, maybe they are waiting for the price to go up and make profit to at least lessen the damage. What are your thoughts on this?
Are you willing to sell your crypto to pay our debts or just go on settle it in months or years?
Cryptocurrency is already under the scanner of government agencies. They have associated it with everything which is illegal.
After reading the story of this couple I am in the conclusion that they are wrong on their part. I have no doubt about it. They should immediately do something to repay their tax.
If they need to sell their crypto assets then they should otherwise, the tax agency would suggest the government that cryptocurrency is a new illegal way for them to abet tax.
It does sound silly but, it will happen for sure.
After reading the story of this couple I am in the conclusion that they are wrong on their part. I have no doubt about it. They should immediately do something to repay their tax.
If they need to sell their crypto assets then they should otherwise, the tax agency would suggest the government that cryptocurrency is a new illegal way for them to abet tax.
It does sound silly but, it will happen for sure.
@Baofeng I’m really baffled as their tax liability was just 1 million plus interest, and they had over $7 million in crypto assets then why didn’t they sell off their crypto’s and clear their dues?, unless they had no real intention of paying their dues which is really shameful considering the fact that they had the required funds to pay off their dues.
@pakhitheboss you maybe surprised to know but bitcoin is legal in USA, hence the government cannot seize their crypto assets by claiming it’s illegal, also is there any link where we can follow further updates regarding this matter?.
Quote
As of February 2020, Bitcoin was legal in the U.S., Japan, the U.K., Canada, and most other developed countries. In the emerging markets, the legal status of Bitcoin still varied dramatically. China heavily restricted Bitcoin without actually criminalizing the holding of bitcoins. India banned banks from dealing in bitcoins and left the overall legal status of cryptocurrencies unclear. In general, it is necessary to look at Bitcoin laws in specific countries.
Source:
https://www.investopedia.com/ask/answers/121515/bitcoin-legal-us.asp
June 20, 2020, 09:50:08 AM
Cryptocurrency is already under the scanner of government agencies. They have associated it with everything which is illegal.
After reading the story of this couple I am in the conclusion that they are wrong on their part. I have no doubt about it. They should immediately do something to repay their tax.
If they need to sell their crypto assets then they should otherwise, the tax agency would suggest the government that cryptocurrency is a new illegal way to abet tax.
It does sound silly but, it will happen for sure.
After reading the story of this couple I am in the conclusion that they are wrong on their part. I have no doubt about it. They should immediately do something to repay their tax.
If they need to sell their crypto assets then they should otherwise, the tax agency would suggest the government that cryptocurrency is a new illegal way to abet tax.
It does sound silly but, it will happen for sure.
June 20, 2020, 08:16:38 AM
In summary:
- Alexander and Laura Strashny filed income tax return due in 2017, but unable to pay
- they sent IRS letters proposing to pay the liability in iinstallments over a period of 6 years
- IRS received the proposal recorded it and put in in pending status
- As of December 2018, the outstanding liability + interest exceeded $1 million
- IRS sent petition notice "Intent to Seize Your Assets" and Notice of Your Right to a Hearing.
- Petitioners timely requested a CDPhearing, expressinginterest in an installment agreement (IA) and attaching a copyof their previously submitted Forms 433-A and 9465. They did notcheck the boxindicating thattheycould not pay the balance, and they did notdispute theirunderlyingliability for 2017.
- SO review the case and saw that they have a huge cryptocurrency investment
- SO eceived from petitioners’ repre-sentative a copy of their 2018 tax return, which reported wages exceeding $200,000, and investment statements showing cryptocurrency assets valued over$7 million. During the conference the SO noted that petitioners were currently
- 4-[*4] withdrawing$19,000 per month from their cryptocurrency account, and she asked why they could not liquidate or borrow against those assets in order to discharge their tax liabilityin full.
- Lawyers for the petitioners argue that they are unable to draw on their cryptocurrency account to pay their liability.
- On June 25, 2019, the IRS issued a notice of determination sustaining the proposed levy, rejecting petitioners’ request for an IA, and stating that “[l]evyaction is permitted 30 daysafter the rejection.
https://www.ustaxcourt.gov/USTCInOP/OpinionViewer.aspx?ID=12258
There's no denying that the petitioners have money to pay to settled their tax liabilities. But they can't withdraw it in a timely manner, maybe they are waiting for the price to go up and make profit to at least lessen the damage. What are your thoughts on this?
Are you willing to sell your crypto to pay our debts or just go on settle it in months or years?
- Alexander and Laura Strashny filed income tax return due in 2017, but unable to pay
- they sent IRS letters proposing to pay the liability in iinstallments over a period of 6 years
- IRS received the proposal recorded it and put in in pending status
- As of December 2018, the outstanding liability + interest exceeded $1 million
- IRS sent petition notice "Intent to Seize Your Assets" and Notice of Your Right to a Hearing.
- Petitioners timely requested a CDPhearing, expressinginterest in an installment agreement (IA) and attaching a copyof their previously submitted Forms 433-A and 9465. They did notcheck the boxindicating thattheycould not pay the balance, and they did notdispute theirunderlyingliability for 2017.
- SO review the case and saw that they have a huge cryptocurrency investment
- SO eceived from petitioners’ repre-sentative a copy of their 2018 tax return, which reported wages exceeding $200,000, and investment statements showing cryptocurrency assets valued over$7 million. During the conference the SO noted that petitioners were currently
- 4-[*4] withdrawing$19,000 per month from their cryptocurrency account, and she asked why they could not liquidate or borrow against those assets in order to discharge their tax liabilityin full.
- Lawyers for the petitioners argue that they are unable to draw on their cryptocurrency account to pay their liability.
- On June 25, 2019, the IRS issued a notice of determination sustaining the proposed levy, rejecting petitioners’ request for an IA, and stating that “[l]evyaction is permitted 30 daysafter the rejection.
https://www.ustaxcourt.gov/USTCInOP/OpinionViewer.aspx?ID=12258
There's no denying that the petitioners have money to pay to settled their tax liabilities. But they can't withdraw it in a timely manner, maybe they are waiting for the price to go up and make profit to at least lessen the damage. What are your thoughts on this?
Are you willing to sell your crypto to pay our debts or just go on settle it in months or years?
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