Have people been forced to pay tax over Bitcoin yet? - page 11.

kkent

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Quote from: Almat on October 07, 2017, 10:36:06 AM

I don't think there's any way to monitor and tax every single transaction right now. I know some people pay taxes on their earnings for Bitcoins, but because of how it works, they're free to declare an incorrect amount.

The IRS in the US has already begun working on negating this issue. You are far better off assuming that they know if you live in the US, rather than getting audited down the road and being in some serious trouble.

https://www.forbes.com/sites/robertwood/2017/08/24/irs-hunts-bitcoin-user-identities-with-software-in-tax-enforcement-push/#97b44a79cd0e

Basmic

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Quote from: savushkinTA on October 14, 2017, 04:06:39 PM

You can buy things using bitcoin and you do not have to pay tax because no one can track your transactions

Unfortunately it's only a dream. It is too few suggestions in order to be able to freely spend their bitcoin. May be for this reason that the government are not afraid of bitcoin. All users are forced to sell coins for Fiat and becomes a target for the tax authorities.

savushkinTA

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Until it's wrong

exstasie

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Quote from: savushkinTA on October 14, 2017, 04:06:39 PM

You can buy things using bitcoin and you do not have to pay tax because no one can track your transactions

That's not true. It's only generally true if you are doing purely P2P barter transactions and avoiding centralized marketplaces. For example, if you are regularly using Bitcoin profits to buy gift cards through Gyft.com to buy things that are sent to your physical address, you can be tracked fairly trivially.

Now do I think that governments are tracking these people? No. But it would be trivial for them to put an infrastructure in place for them to do so. What I think is more likely to happen is that agencies like the IRS will offer tax guidance that governs the use of capital gains on cryptocurrency payments below a certain monetary threshold, to avoid over-burdening both consumers and the IRS regarding tax reporting. If the guidance is lax enough, I think most consumers will willingly comply and that will be good enough for the IRS.

savushkinTA

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You can buy things using bitcoin and you do not have to pay tax because no one can track your transactions

entrepmind23

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Quote from: F12TRS on October 07, 2017, 04:38:13 AM

Quite curious if this has been the case. Obviously I'm hoping it haven't been the case.

In my country, bitcoin is not yet that popular and not regulated yet so those people who are using bitcoin and earning it are not taxed yet or shall I say not including it as part of their income. When time comes when bitcoin will be popular, I'm pretty sure sooner or later the government will act upon it and want a part of the citizen's income from bitcoin. Maybe for now I am treating it as a privilege not including it as part of taxable income besides the government cannot easily track the bitcoin earners and has so much problems than focus on bitcoin earners.

Later on when they regulate it, they will just tax the platforms the bitcoin earners are using and then the platform will just pass it on to their users so that anyone who will have transaction will be able to pay tax. In this way, government will not be having a hard time tracking the bitcoin users.

Kingofbitcoin12345

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If there is an existing policy about it maybe we would have read it or hear from this forum alone.. So it means that there is no implication that forcing someone to pay taxes is happening.. But is it an assurance that this will or would not be happening in the future is another story to tell.. So for now let’s just be an ordinary users and thinking much about this things isn’t good..

gutshot5820

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not that i know of in the us. I'm sure they're working on it tho

Lampaster

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Quote from: Arkann on October 12, 2017, 10:56:35 PM

When bitcoin will be recognized by the state as a means of payment, we will have to pay in exchange for such recognition a tax when exchanging crypto currency for fiat. This is indeed so. So enjoy as long as a certain freedom of the crypto currency and its uncertain status.

It seems to me that instead of enjoying life until the government made its surprise attack we need to work hard to be able to use bitcoin directly.This will complicate the task of the government to track bitcoins circulation and will relieve us from the obligation to pay taxes.

pearlmen

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I have not seen anyone around here and at the same time, I have not read about it in the internet and I think its largely due to some facts which are:

1. In the countries that have given bitcoin attention, there is no way around not paying the tax so there is not need to be forced to do that and when you do, you be ready to face the music.

2. For the countries not yet giving the attention, there is really nothing to force since it technically does not exist.

Arkann

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When bitcoin will be recognized by the state as a means of payment, we will have to pay in exchange for such recognition a tax when exchanging crypto currency for fiat. This is indeed so. So enjoy as long as a certain freedom of the crypto currency and its uncertain status.

Sir Cross

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Quote from: exstasie on October 08, 2017, 06:08:57 AM

Quote from: Palmerson on October 08, 2017, 05:39:17 AM

Quote from: exstasie on October 08, 2017, 05:32:22 AM

Quote from: F12TRS on October 07, 2017, 04:38:13 AM

Quite curious if this has been the case. Obviously I'm hoping it haven't been the case.

I'm sure they have. In the IRS request to Coinbase, they cited multiple cases of tax evaders who had used Coinbase to facilitate the tax evasion. They used these cases to argue that Coinbase should turn over all customer data, so they can find similar tax evaders. The court rightfully rejected the request, but the underlying facts make clear that they are already coming after people for this.

If you are in the US and you have large wires in and out of your accounts, or you do high volume on LocalBitcoins, I'd be careful and do everything by the books. Bitcoin is no longer in the shadows. The taxman wants his cut.

Bitcoin is the greatest danger to America. For this reason, I am confident that the American government will never legalise its use but will soon declare war on the world of bitcoin. I think that the taxes Americans are interested in less likely. They are concerned about the fact that people around the world will abandon the dollar in favor of bitcoin.

I think there is a small chance of that. Years ago, amidst all the calls by Congressmen, etc. to ban it, it seemed more likely. But a lot has changed since then. Even in the BTC-E indictment, the DOJ stated that there were legitimate uses for cryptocurrencies. The CFTC allowed LedgerX to formally register to offer regulated Bitcoin futures contracts. The US Marshall Service auctioned off hundreds of thousands of bitcoins -- you think the government would come back to Tim Draper and say, "thanks for your money, now give up your bitcoins, they're illegal"?

My take is that the US government is smart enough to know that they can try to ban it, but demand will not go away. It will thrive in the rest of the world, given time.

I guess that as long as there is demand, the government can not impose a ban because there are numerous bitcoin users. If they force to do so or if they declare war against bitcoin it would be possible for their to be chaos. The US government may make actions to prevent its use such as regulations and high taxes but with the huge number of bitcoin users in the country, they will have a hard time eradicating bitcoin. They should just go with a compromise -- one that would benefit both parties.

Nameless27

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Quote from: F12TRS on October 07, 2017, 04:38:13 AM

Quite curious if this has been the case. Obviously I'm hoping it haven't been the case.

“Forcing”?, only implemented is proper for me. If it is against they’re will only a dictator kind of government will force a taxpayer to pay for it. But you can only be liable to the authorities with accumulated pending tax evasion case prior to filling.

But first before going to that discussion, the government must have concrete bill and well studied law for this particular issue as it might be questioned in High courts for its constitutionality.

sindikat

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The government will not be able to calm down until will not make all people who use cryptocurrency to pay taxes. It will not be difficult to do. Each person periodically exchange their coins for Fiat. This is the weakest link in all cryptocurrencies. At this stage the government can force us to pay taxes or even to ban all cryptocurrencies. Every day comes news that some governments want to legalize crypto-currencies or deny. Once they reach consensus, the market may collapse. Only the ability to share directly between users may resist the government.

Hegelia

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In the feature the Governments will find a a path for put a fee over bitcoin.It will be more often than we think.

audaciousbeing

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In a country like the United States and other developed countries, you don't even need to be forced you will willingly disclose your income because of the environment over there and how effective the IRS is, no matter how secure you could be so far you will need to convert to fiat using the bank, you are definitely going to be located and charged accordingly which could turn out to be massive in a case you are trying to avoid tax and you are caught.

But for some other countries, there is no way to force anybody because there is no enough database to track users income in proportion to their hours of work. In those countries, its pretty easier to avoid payment of tax and still get away with it.

BitHodler

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Quote from: Emmami@758 on October 09, 2017, 05:01:03 AM

so nothing to worry about tax. bit coin transaction is more secure and confidential.

At this point it's still up to the people to declare everything in a honest manner, and that's still not happening, which is something I can perfectly understand. This however is something the government is well aware of.

It won't take long (max a year or two) before exchanges will be forced to 'snitch' on their traders in an attempt to pay due taxes, that without these measures, would likely never get paid.

Regulations are getting stricter with the month, and for that reason we should prepare ourself for what still has to come, because I believe we haven't even seen the worst yet ~ governments are just starting with catching up.

matuson

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Quote from: iamTom123 on October 09, 2017, 04:07:52 AM

Quote from: F12TRS on October 07, 2017, 04:38:13 AM

Quite curious if this has been the case. Obviously I'm hoping it haven't been the case.

Tax is something nobody can evade for long without consequences especially in developed countries like USA and other Western nations where tracking technologies can effectively locate people who might have committed some frauds on their tax returns. Tax is an obligation and even if we don't want to this is something we have to do.

Forced? Maybe that can be the case since there are laws implemented to collect taxes even if we don't want to pay. But this is something we really have no choice with. So instead of thinking if we are forced or not...maybe we should reorienting ourselves that we are good citizens of the land hence we are paying our share for the government.

Even in America you don't have to pay taxes if you earn income in another country. There is agreement between the two countries for avoidance of double taxation. This scheme used offshore zones. What prevents you to earn bitcoins outside the us and buy goods via the Internet not to violate the laws.

Emmami@758

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Quote from: F12TRS on October 07, 2017, 04:38:13 AM

Quite curious if this has been the case. Obviously I'm hoping it haven't been the case.

no it is not real. if we have to transferring bit coins from one wallet to another wallet then any tax may not cut. if we transferring money means it may cut few amount of money otherwise it is not cut. so nothing to worry about tax. bit coin transaction is more secure and confidential.

iamTom123

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Quote from: F12TRS on October 07, 2017, 04:38:13 AM

Quite curious if this has been the case. Obviously I'm hoping it haven't been the case.

Tax is something nobody can evade for long without consequences especially in developed countries like USA and other Western nations where tracking technologies can effectively locate people who might have committed some frauds on their tax returns. Tax is an obligation and even if we don't want to this is something we have to do.

Forced? Maybe that can be the case since there are laws implemented to collect taxes even if we don't want to pay. But this is something we really have no choice with. So instead of thinking if we are forced or not...maybe we should reorienting ourselves that we are good citizens of the land hence we are paying our share for the government.

Topic: Have people been forced to pay tax over Bitcoin yet? - page 11. (Read 5519 times)