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Topic: Lab Rat Data Processing, LLC (LabRatMining) Official Announcement - page 78. (Read 452170 times)

BKM
sr. member
Activity: 315
Merit: 250
I don't care about your weird US laws...i want some update regarding this invest Shocked

Expect Lab rat to declare LRM bankrupt insolvent shortly due to tax liability.

 

In the next chapter, can you have Lab_Rat being controlled by CIA mind rays?  That would be *awesome*.


grnbrg.

There you go again. Entertaining us... Smiley

full member
Activity: 213
Merit: 100
I think there are plenty of people with lawyers on stand by right now

I would submit that proceeding collectively could maximize our voice and minimize the individual
expense of legal representation (if that is necessary).

I have received some PMs from interested parties. I still see wisdom in acting collectively regarding
any formal legal responses from LRM. I would appreciate a PM from you either way (collective or
individual approach), so I can get a head count. If we don't build a majority group, our response
will have little impact.

By the way, I'm not the type that does much of anything "collectively". I'm mostly doing this to try
and maximize our voice and minimize the cost associated with this process. I am also not doing
this to establish some sort of leadership position in this group. I would just as soon let someone
who has a little less skin in the game be our chief advocate. If your decision to act collectively or
individually is still on hold until you hear what LRM legal comes up with, that is fine too. I will submit
that getting a team put together ahead of time is more proactive than reactive. In my experience,
when I have behaved proactively in my past situations, it has always served me better than
when I behaved reactively.

So, bondholders, please PM me one way or the other at your earliest convenience.

Thanks,

Rustyh17
member
Activity: 98
Merit: 10
I don't care about your weird US laws...i want some update regarding this invest Shocked

Expect Lab rat to declare LRM bankrupt insolvent shortly due to tax liability.

 

In the next chapter, can you have Lab_Rat being controlled by CIA mind rays?  That would be *awesome*.


grnbrg.

Hmmm... CIA mind rays?.... Maybe, you're onto something.

Currently this is as plausible as any other information we have received form LR...
hero member
Activity: 924
Merit: 506
I don't care about your weird US laws...i want some update regarding this invest Shocked

Expect Lab rat to declare LRM bankrupt insolvent shortly due to tax liability.

 

In the next chapter, can you have Lab_Rat being controlled by CIA mind rays?  That would be *awesome*.


grnbrg.

Hmmm... CIA mind rays?.... Maybe, you're onto something.
newbie
Activity: 19
Merit: 0
In the next chapter, can you have Lab_Rat being controlled by CIA mind rays?  That would be *awesome*.

grnbrg.

+1
hero member
Activity: 509
Merit: 500
Official LRM shill
I don't care about your weird US laws...i want some update regarding this invest Shocked

Expect Lab rat to declare LRM bankrupt insolvent shortly due to tax liability.

 

In the next chapter, can you have Lab_Rat being controlled by CIA mind rays?  That would be *awesome*.


grnbrg.
sr. member
Activity: 294
Merit: 250
I don't care about your weird US laws...i want some update regarding this invest Shocked

Expect Lab rat to declare LRM bankrupt insolvent shortly due to tax liability.

 
hero member
Activity: 728
Merit: 500
I don't care about your weird US laws...i want some update regarding this invest Shocked
sr. member
Activity: 672
Merit: 251
So double trouble now!  Man, this contract is going to take months.   Angry
sr. member
Activity: 476
Merit: 250
I would bet a large amount that lab rat had no pre knowledge of the IRS ruling and it has nothing to do with the issues he has supposedly been working on for months. The IRS simply does not pick favourites to pre release information to.

I agree with you as I have known Lab (More or less) for a long time.

I think he is in a jam though over Fin-CEN and Money Transmitter requirements.

My $.02.

Wink
sr. member
Activity: 473
Merit: 250
I would bet a large amount that lab rat had no pre knowledge of the IRS ruling and it has nothing to do with the issues he has supposedly been working on for months. The IRS simply does not pick favourites to pre release information to.
sr. member
Activity: 672
Merit: 251
All of my current bitcoins were earned via mining.
Mining is a taxable event, so if you mined 1btc today, you'd need to report about $585 of income today.
sr. member
Activity: 476
Merit: 250

In my opinion, this is a band-aid until the IRS figures out real rules. They need something so the new bitcoin millionaires can get taxed, but it isn't ideal for the IRS nor users.

LRM could be fine, they just need to collect SSNs and addresses of everyone and issue 1099MISCs for everyone that earned a total of $600 in a given year (valued at the time dividends were sent). If LR stored bitcoin, he'd need to pay tax on his earnings. I'm assuming he set up his LLC as a pasthrough, so he'll pay individual rates on distributions he makes to himself. This is an additional complication, and something I pointed out 50 or so pages ago - but was told that LR doesn't keep anything in BTC so this wouldn't be an issue.
strikethrough, it can be complicated depending on the wording of the new "contracts" so I don't really know how this effects LRM.

This was my fear.  Not that I care about giving the data, but would labrat want to shutdown instead of comply with tax and reporting rules?  It does also depend how labrat structures things.  Some people won't give up this info, so some of the bonds might become "invalid".  Lots of crazy scenarios are possible pending the final decision.  I hope this was the issue causing the original problem.  I'd hate for this to be an additional problem for labrat to deal with.

It already is.

My $.02.

Wink
sr. member
Activity: 672
Merit: 251

In my opinion, this is a band-aid until the IRS figures out real rules. They need something so the new bitcoin millionaires can get taxed, but it isn't ideal for the IRS nor users.

LRM could be fine, they just need to collect SSNs and addresses of everyone and issue 1099MISCs for everyone that earned a total of $600 in a given year (valued at the time dividends were sent). If LR stored bitcoin, he'd need to pay tax on his earnings. I'm assuming he set up his LLC as a pasthrough, so he'll pay individual rates on distributions he makes to himself. This is an additional complication, and something I pointed out 50 or so pages ago - but was told that LR doesn't keep anything in BTC so this wouldn't be an issue.
strikethrough, it can be complicated depending on the wording of the new "contracts" so I don't really know how this effects LRM.

This was my fear.  Not that I care about giving the data, but would labrat want to shutdown instead of comply with tax and reporting rules?  It does also depend how labrat structures things.  Some people won't give up this info, so some of the bonds might become "invalid".  Lots of crazy scenarios are possible pending the final decision.  I hope this was the issue causing the original problem.  I'd hate for this to be an additional problem for labrat to deal with.
member
Activity: 94
Merit: 10
I haven't actually sold any of my bitcoins. About the only thing the IRS could possibly track (form-wise, not blockchain-wise) is that I bought some via Coinbase last year. All of my current bitcoins were earned via mining.
sr. member
Activity: 454
Merit: 252
That doesn't tell me anything. At best it just means "for this year" not "for all previous years". My tax guy said this:

"Yeah since there's no reporting coming into them from any outside source yet, there's really no way for them to even know anything about mining or bitcoins being bought and sold prior to this year."

The new guidance is that cryptocurrencies always were property, not just starting this year - but since their origination. Therefore, if you didn't report them as property in 2008, you were committing tax evasion in 2008. However, they will graciously allow you to voluntarily report those previous earnings and they won't penalize you.

Your tax advisor is correct. Without 1099s, there is nearly no way (or at least it is massively cost prohibitive) for the IRS to track down every bitcoin user prior to this year. It doesn't change the fact that you were supposed to do it since 2008.

In my opinion, this is a band-aid until the IRS figures out real rules. They need something so the new bitcoin millionaires can get taxed, but it isn't ideal for the IRS nor users.

LRM could be fine, they just need to collect SSNs and addresses of everyone and issue 1099MISCs for everyone that earned a total of $600 in a given year (valued at the time dividends were sent). If LR stored bitcoin, he'd need to pay tax on his earnings. I'm assuming he set up his LLC as a pasthrough, so he'll pay individual rates on distributions he makes to himself. This is an additional complication, and something I pointed out 50 or so pages ago - but was told that LR doesn't keep anything in BTC so this wouldn't be an issue.
strikethrough, it can be complicated depending on the wording of the new "contracts" so I don't really know how this effects LRM.
sr. member
Activity: 473
Merit: 250
That doesn't tell me anything. At best it just means "for this year" not "for all previous years". My tax guy said this:

"Yeah since there's no reporting coming into them from any outside source yet, there's really no way for them to even know anything about mining or bitcoins being bought and sold prior to this year."

That is just plain wrong, some exchanges already report and hv been doing so for some time.
sr. member
Activity: 672
Merit: 251
That doesn't tell me anything. At best it just means "for this year" not "for all previous years". My tax guy said this:

"Yeah since there's no reporting coming into them from any outside source yet, there's really no way for them to even know anything about mining or bitcoins being bought and sold prior to this year."

Prior to March 25, 2014 does mean all years prior.  However, you are correct about reporting.  It's unlikely the IRS has much 2008-2013 information to bust people, but you never know.  The NSA has a far reaching databank.  

Personally, I've always reported all gains as ordinary income.  Mostly because the law has always stated that all income needs to be reported, and I didn't want to have to go back once guidance was issued.  
member
Activity: 94
Merit: 10
That doesn't tell me anything. At best it just means "for this year" not "for all previous years". My tax guy said this:

"Yeah since there's no reporting coming into them from any outside source yet, there's really no way for them to even know anything about mining or bitcoins being bought and sold prior to this year."
sr. member
Activity: 476
Merit: 250
Wait, what?? Retroactive? Shit.

Edit: Where in the official pdf does it say that it's retroactive?

Right here:

" Q-16: Will taxpayers be subject to penalties for having treated a virtual currency transaction in a manner that is inconsistent with this notice prior to March 25, 2014? A-16:
 Taxpayers may be subject to penalties for failure to comply with tax laws. For example, underpayments attributable to virtual currency transactions may be subject to penalties, such as accuracy-related penalties under section 6662. In addition, failure to timely or correctly report virtual currency transactions when required to do so may be subject to information reporting penalties under section 6721 and 6722. However, penalty relief may be available to taxpayers and persons required to file an information return who are able to establish that the underpayment or failure to properly file information returns is due to reasonable cause."

Bitcoin has now gone MAINSTREAM!

Yippie-Cai-Yah!

My $.02.

Wink
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