FATCA compliance with Bitcoin? | Bitcointalksearch.org

AnonyMint

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Quote from: AnonyMint on November 19, 2013, 02:47:28 PM

Quote from: Ekaros on November 19, 2013, 11:47:35 AM

Quote from: bitcoinBull on November 19, 2013, 11:13:15 AM

Quote from: AnonyMint on November 19, 2013, 05:48:03 AM

Armstrong has reiterated some (but not all) of my points against BitCON:

http://armstrongeconomics.com/2013/11/19/congressional-hearings-on-bitcoin/

I agree, bitcoin "will not replace the dollar" and it also won't wash your dishes.

But its best damn offshore online speculative investment the internet has ever seen.

That is kinda crazy statement in itself... But there is quite a lot truth in it...

And did you comply with FATCA then, which was one of Armstrong points of how they will put you in jail (if you are a US citizen).

Saving this as evidence that bitcoin investors do understand it is an offshore investment.

Saving the information here for the authorities to use in the future.

AnonyMint

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Activity: 518

Merit: 521

My understanding is FATCHA does not require us to declare assets we hold overseas which are not in an "account", i.e. Nestmann said we probably do not need to report bullion that we hold in our homes, yet we would need to report (even allocated) bullion in any overseas account.

Are Bitcoins a private asset or an account? And where do they reside in our possession or in the public ledger? And where does the public ledger reside?

The problem is that governments (IRS in particular) invariably interprets laws in the way that brings them the most income. So I think they can argue (in their Kangaroo rigged courts) that since the public ledger resides in at least one computer overseas, then it is reportable under FATCHA.

Okay so no big deal right? Just report it. Well what about all of you who did not report on time already and held an account that was ever worth more than $10,000? You are already liable for 5X the maximum value of the unreported account in penalties plus 5 years jail time.

And reporting marks us in the IRS computers as "potential tax avoiders". The chance of audit drastically increases.

This is one of those issues that caused me to think it just isn't worth investing in Bitcoin without 100% reliable anonymity.

I am eager for someone to refute my analysis on this.

Disclaimer: consult your own tax attorney, I am not providing tax advice, merely discussing this issue.

AnonyMint

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Activity: 518

Merit: 521

Quote from: ?? on ??

Putting 2 + 2 together from the posts below, the logical decision for me is to invest in BTC...

So please help me. How does one buy Bitcoin in size with the lowest spread, fees, hassle and risk if anonymity is not the objective? And how do I do this while residing in a third world country where I can't prove residence any more in the USA while being a US citizen thus most financial institutions are afraid to deal with me due to the FATCA regulations coming? And how do I make sure I comply with FATCA, i.e. is Bitcoin an offshore account?

And how can I be sure to be able to have a way to exchange out of BTC given the FATCA regulations coming into full force in 2014?

Sorry if I feel like bringing any anonymous cash into BTC is akin to re-entering The Matrix.

FATCA has very dire ramifications to the US person if he/she does not comply. See second link above for details. See also this link for more articles on FATCA.

Is the situation for Bitcoin clear?

This worries me greatly and another reason I did not invest in BTC yet.

Mod feel free to move this topic to the appropriate forum for tax compliance issues. I am only aware of the Economics forum for such related discussion.

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