Topic: Is bitcoin the perfect answer to IRS audits? - page 2. (Read 2095 times)
You have to tell them how much you paid for the bitcoins. You can't just say "I played the bitcoin market and won" (whatever that means) and leave it at that. My guess is that if you can't show how much you paid for it, then they will tax you on the full amount. You could lie, but it would be bad if they caught you lying. IANAL.
They could ask you to reveal your public bitcoin address. If they think you owe them a lot of money then I don't see them simply rolling over.
0.02btc
0.02btc
I think they meant that it's the perfect answer to the question of 'Where did the money come from?' when you do file the taxes. The way they were talking seemed to imply that there was an assumption of you properly paying taxes on it, hence the mentioning of how someone could rob a bank and deposit it into another bank and just claim it was gained via bitcoin. Obviously that wouldn't work directly due to serial numbers on the money and such and would need to be laundered via some means, but it's the basic idea.
If they don't check (as suggested) then he might have a point but I can see it opening up a can of worms if a lot of people try it, or someone tries it for a large amount. Surely taking it offshore would be safer.
They could ask you to reveal your public bitcoin address. If they think you owe them a lot of money then I don't see them simply rolling over.
0.02btc
0.02btc
I think they meant that it's the perfect answer to the question of 'Where did the money come from?' when you do file the taxes. The way they were talking seemed to imply that there was an assumption of you properly paying taxes on it, hence the mentioning of how someone could rob a bank and deposit it into another bank and just claim it was gained via bitcoin. Obviously that wouldn't work directly due to serial numbers on the money and such and would need to be laundered via some means, but it's the basic idea.
They could ask you to reveal your public bitcoin address. If they think you owe them a lot of money then I don't see them simply rolling over.
0.02btc
0.02btc
Ive been doing some research into how profits from currency markets were registered on ones tax return and found that if done personally it is registered as a capital gain. Well, normally you would have some sort of transaction history or receipt associated with the purchase of foreign fiat, or at least the IRS would expect you to, but if for instance you invested a small sum in the early days of bitcoin and now have a very large sum, and nothing can be linked to you as there is no registration system in place for purchasing coins, then when you cash out and the IRS comes asking you to show proof where the money came from, you can just say you played the bitcoin market and won and theres no way for you or them to prove otherwise. It would seem even if this werent the case, even if you robbed a bank and wanted to put it in another bank then when the IRS comes asking where it came from you can just say "bitcoin".
Maybe im mistaken, would anyone else like to chime in? If you pay your taxes and dont try to screw them through bogus deductions, do they really care where your money comes from?
Maybe im mistaken, would anyone else like to chime in? If you pay your taxes and dont try to screw them through bogus deductions, do they really care where your money comes from?
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