Topic: I didn't pay capital gains tax on bitcoin sales to IRS today - page 16. (Read 24100 times)

Well I don't know if thats a smart think to do (poke the beast and all) but without Gox records it's extremely hard and involves a lot of remembering. :-/

That's not how audits work, the OP is just hilariously naive. The burden is on you to produce your records and prove you paid your taxes and accounted for all your income, not them. They don't need to prove you own x bitcoins, just that there are discrepancies you can't account for. That's tax evasion, period. Being able to prove how much you owe is just a bonus. They might not be able to ding you for the full amount you actually owe if they can't find it, but that isn't going to be much consolation when you're sitting in your cell and Bubba decides you got a purty mouth. IRS isn't as dumb as some you seem to think, and I have no doubt they'll be looking to make examples of some folks. Won't be me, I'm straight and legal.

Maybe OP lives somewhere the USA IRS doesn't have jurisdiction. Seems to me that quite a few countries are ignoring Bitcoin. Thus, profits are not taxable. These countries will likely do best in the new world (post internet) economy.

well i'm glad i paid the IRS.....on 16k profit on miing with equip purchases..home office new business credit (immediate 50% off equip startup costs..hey i'm a farmer) etc etc
that tax lady almost got all of the 4k i should have spent ...i only  spent 550 extra bucks..

as the tax lady said i be a 'farmer' the gov't can't say that they will take 25% of gross income from me being a miner...and only way to pay that is to "mine" and
not have me be able to take off all this equip/home office/etc etc on my taxes

ie they can't have both ways if that is the only way i can make the 'gross income' they are taxing at 25%....so as a business
if next year it all tanks i can write it all off not just the 3k personal capital gains taxes per year....i expected but all of it

on 16k i paid 550 bucks back from the 2200 on my prev refund (amended my taxes)

so 1 yr and 1 day from Oct when i started mining i can cash out what i wish with only the 20% capital gains to worry about and be IRS friendly

and yes i assume the IRS rules will last till this DEC 2014 due to the Nov elections nothing will get passed (at best) till dec 2014 at the best imho

main point of being legal...my current bank (which screwed up my 2 wire xfers to knc so badly it took a month) just sent me a letter that they find it
suspicious that i did so many wire xfers (i did not it was the bank trying to fix it) ...if the bank i do stuff with can't even tell another branch of the bank
that they are the ones initiating wire xfers over 10k well....due to duplicate efforts to get them thru...well....any wire xfer you have done will
probably result in the same form letter i got asking 'wtf did you wire xfer $$$ to sseden and then anther from sweden come from ..ie prove you are not
a drug dealer kinda paper trail process ....whats a guy going to do....

so people that did an over 10k international wire xfer for your purchase in Sweden by knc ..expect a letter from your bank asking what it was used for
and if you got the 10k back from sweden expect another letter and if you cashed the $$$ out to move to another bank (in my case)
expect a 3rd letter ..fun fun...but i got to assume if they don't know enough to even look at my account on their bank and see that i paid and refunded on my statements..then I'm
fairly sure they have already 'posted" this off to the powers that be .....in case i'm a drug lord

so anyway i expect a lot of folk who did not pay taxes on their bitcoin this year are gonna be shocked when contacted by bank and then IRS
on what this 10k to sweden went for (also the 10k back if refunded i got both questions  asked of me) ie explain your paper trail on bitcoin
equip purchases and why you  reported no profit on such to the IRS..

i knew being paranoid would save my butt someday gonna be real interesting but mysefl all is legal as crap according to cpa lady...

me....i'm legal ....golden...new business.....and they can't touch me...went thru my cpa all legal...but not a lot of incentive to mine BTC this year at equip options/prices

I'd be freaking now if i would have gotten these form letters from the bank if I'd NOT paid my taxes ...I'd have been so scewed is likely

anyway maybe i just have bad luck but them 10k wire xfers hither and yon ..always bugged me at over 10k each or same bell goes off for refund imho

seems being chicken and doing btc 'legit' just saved me a lot of grief

results may vary this is just me and a lot of the perks was new home business writeoffs and persks


Searing

We don't know how much they know, so...
They might know a lot more than you think. 

Even if they are able to identify him, how will they prove he owns how many Bitcoins?

May be he is dealing with 100% cash, through localbitcoins. But remember the recent court case against two Bitcoiners who used cash for Bitcoin deals in Florida (Pascal Reid and Michell Espinoza).

OP, if IRS decides to audit your fiat transaction history, then you are going to give some answers. You will be subpoenaed and so will the forum histories, your bank account services, etc.

Tax evasion is a serious crime. Bitcoin sales to fiat is taxable. One serious audit and your ass is goin to the big house for few years at least. Not to mention now you left a digital confession, then you are truly digging your own grave. The 'beyond shadow of doubt' isn't as foolproof as you think it is once you are actually in the courtrooom.

Too late for regrets now. Just pray you don't get audited. It's remarkably easy to track someone's irregularities if they look. Whether you are or aren't a big enough fish is irrelevant if they decide to audit you - you are leaving it all up to chance and have no control over it.

Of course, when you take a profit in fiat you owe taxes.
Any other approach is dangerously illegal.

No, I'm not. Had you actually talked with a tax professional prior to the IRS guidance (which, given the nature of this thread, you hadn't), you would have known that taxes were always owed on realized gains from bitcoin. Again, it was just unclear whether bitcoins were either currency or property.

Not sure what you mean by "It's always been taxable". If you mean the IRS will always want to steal, then I'd agree. If you mean that they were always owed, then you're wrong. If you mean they've always been able to collect, then this thread proves that wrong.

Huh? It's always been taxable, we were just uncertain as to how. Now that uncertainty is gone.

lol

lol... that was classic. Strictly IMO, we are forced to depend upon the bankers, at least until Bitcoin gets more popular. Boycotting banks now will do no good for us, other than causing inconveniences.

You don't have a bank account.  That means that you probably don't have a house, or a credit card, direct deposit, or children, or any of the other things that are part of normal life.  You are basically a monk of a pseudo-religion.  Your experience is so far from our own that any advice that you might have is likely to be useless or even dangerous to us.

Monks cannot provide a good example to the rest of us, because if we all lived like monks there would be no families and thus no future.  All purely monastic societies die sooner or later.

A cryptoanarchist bitcoiner with a bank account?

Blasphemy!

The only place I keep fiat is in my wallet. Banks are for suckers.

what a fool leave sleeping dogs alone

selling Bitcoin for Fiat

blasphemy

Well... Ross Ullbricht also used the TOR browser and he thought that the FBI would never track him down. Guess what. He was wrong. So don't be overconfident and no need to brag about this.