Pardon my French, but IRS can go down on their knees and well, you get it right?
Seconded. They have no way to verify how much bit coin I hold. I don't plan to cash any out but if I did I would use local bit coins to do it.
'
If you are in USA and did wire xfers (and your bank messes up on them) and they are over 10k and you sign the following disclaimer....."i am not
using wire xfers internationally to hide taxes" .....your bank then calls you up says you are 'suspicious' and they are gonna freeze your account
and they are gonna report you to IRS/SEC
etc for money laundering (they messed up 6x on a money order looked like 60k to the computer somewhere up the line at the bank..that red flag'd such) and
you need to come to the bank with your business tax forms for bitcoin mining and/other proof you are not a 'drug lord' i guess
yep happened to me...but i got to thinking that with 10 attempted wire xfers (me having to sign the form each time) and only 4 of them going thru
(of which 3 were refunded adding to the problem) ...that maybe just maybe in that 2013 was my first year mining I should file a tax return 2013
be a home business and eventually depreciate my equip purchases and pay the nice IRS people 25% on what I mine because I just KNEW this was
not gonna end well..getting the stink eye at the bank..weird looks ....too much paper on me..boy was i right!
and yep I was correct being paranoid paid off big time....took my tax forms to the bank .pointed out on my statement (which they never bothered to
look at) that 6 wire xfers were their fault and canceled the same day...much yelling at people by higher ups on wasted time etc
so yeah w/o the tax home biz stuff on virtual mining I'd be in a world of hurt with the IRS right now...(I think it is mandatory 1yr prison and up to 5 yrs
if deliberate tax evasion ..er gee IRS I don't know where them 40 coin came from ...yep I'd be toast now ..in a loving relations ship with 'bubba' in prision!)
So..with equip depreciation playing the deduction game I likely will get around the 25% tax on anything i mine or close to such and likely the rules will
be changed to something more sensible in 2015 (i hear both parties in gov't are not happy with the IRS calling it land/property etc)
So my point is IF YOU DID A WIRE XFER OR USED A BTC EXCHANGE the IRS CAN find you...make sure you know how 'vulnerable' you are on such
miner purchases...also coinbase/btc exhcange/ etc are all 'bank legal' now in the USA ....in order for them to work they now have all the info on you
a bank does...so random audit/mistakes/whatever....unless you buy with BTC outside of exchanges ...miners with cash etc you could find yourself
in my boat
(alas...they got me boys.....don't look back legally 'supposed' to get taxed on 25% of stuff I mine (do get equip depreciation of 100% 5yrs thou) ....so
far have not legally have to paid last year any tax and thru 'legit deductions' same is likely this year..but it is a lot of dodging about and ducking around with the
CPA don't ya know
so yeah...keep the above in mind imho and if it does 'smell fishy' and gets weird at your bank....yep pays to be paranoid ...sometimes they really are out to get you!
needless to say i have a new bank
hope this helps save someone else alas I be lost now... 'legal' shudder
Searing