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Topic: Will the IRS deem Bitcoin a currency if more companies accept it? (Read 127 times)

Obito

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Quote from: dothebeats on August 06, 2021, 12:09:20 PM

I don't think demand alone would move the IRS to come to their senses and consider cyptocurrencies as a form of legal tender, or a currency that the masses could use freely. There would be a lot of opposition to this idea, and even if huge companies start accepting crypto on their goods or services, there will always be bigger companies that will be affected by such a move prompting them to react and do the necessary disruption on the process of making things easy for crypto payments.

Either way, people are already using bitcoin for a lot of purposes that IMO, it wouldn't really matter much if the IRS approves of it as a currency or not.

I don't think it's IRS call if the majority wants to call bitcoin a legal tender, I think that kind of matter falls on the Senate to decide. IRS is just the tax bureau of the country, they make sure that everyone is paying and no one is trying to evade. Now of course if they have the call, I don't think that they will oppose bitcoin because they know that they can tax people that uses those.

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Quote from: Husires on July 24, 2021, 03:22:48 AM

Tesla has accepted Bitcoin, and we note that some banks are talking that more customers want Bitcoin, so if many companies accept Bitcoin, will every purchase or sale be taxed?
I do not think that companies will be imposing such taxes on them, otherwise they will accept payments in cryptocurrencies, especially for small transactions.
Do you expect the IRS to adjust the way taxes are calculated if we see more predictions or classification of Bitcoin as a currency rather than a commodity?

In the U.S., there are laws that determine if something is a currency or not. In short, in order to be a "currency", it must be a legal tender and be commonly used as a medium of exchange. Bitcoin is about to become a legal tender in El Salvador, and assuming that it is actually used there that means that legally it will be a foreign currency in the U.S. and it will no longer be a virtual currency.

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Quote from: Husires on July 24, 2021, 03:22:48 AM

Tesla has accepted Bitcoin, and we note that some banks are talking that more customers want Bitcoin, so if many companies accept Bitcoin, will every purchase or sale be taxed?

Tesla first accepted payments in Bitcoin but later they removed it because of Elon Musk and some stupid reasons related with his carbon credits.
Laws can be changed at any time and Bitcoin can be asset, currency or legal tender, all depending what country we are talking about, but I doubt that United States will change this any time soon.

Quote from: Husires on July 24, 2021, 03:22:48 AM

I do not think that companies will be imposing such taxes on them, otherwise they will accept payments in cryptocurrencies, especially for small transactions.

Nobody cares about buying peanuts with Bitcoin, so nothing will change there and I don't expect Bitcoin to replace USD or other fake stable form of payments.

Quote from: Husires on July 24, 2021, 03:22:48 AM

Do you expect the IRS to adjust the way taxes are calculated if we see more predictions or classification of Bitcoin as a currency rather than a commodity?

I don't expect anything from IRS, but I expect that people finally say enough and remove this idea of central governments and tax payments that is obviously not working good for majority of people, or should I say it's working perfectly for small minority.

Gozie51

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Quote from: Poker Player on July 26, 2021, 03:03:41 AM

This post reminded me of what I heard Saylor say the other day. "You only think about spending Bitcoin because you're poor" You never want to sell first-class pristine assets. Ever. Especially the best asset in the word. It's the

I don't care if they classify Bitcoin as currency because I'm not going to spend it (in general, I can do some transactions with very small amounts).

Of course the volatile of bitcoin is mostly the cherish point that drives investment to it as many who enjoys the freedom of decision and risk taking like to put out money to the investment and asset. It is not only the asset for investment by the poor countries or individual but even rich countries and individual like the poor and rich both invest in estate and land.

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Gozie51

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Quote from: Husires on July 24, 2021, 03:22:48 AM

Do you expect the IRS to adjust the way taxes are calculated if we see more predictions or classification of Bitcoin as a currency rather than a commodity?

I'm sure if they have positive report from the public on the use of bitcoin, it will guide them on there judgement about bitcoin. The public is important to get IRS to adjust info the acceptance of bitcoin. For quite sometime this discussion about the views of ITS on bitcoin but with the public making increase in usage then it will push IRS to have some consideration.

teosanru

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Quote from: teosanru on July 24, 2021, 04:42:55 PM

I think Fed won't do this because it would become one additional trouble for them because then they would need to scrutinize every bitcoin transaction like any other forex transaction which is certainly impossible. I think until there is pressure from the Government to regulate the cryptocurrency market altogether, IRS or even FED on a standalone basis really won't do this.

So who can modify the tax procedures?
Like you, I do not expect Bitcoin to be accepted as a currency, but we see more people who want to buy and therefore the tax system must be modified to make profits for them.

Tax procedures are modified by IRS but tax laws are ammended by the senate or the parliament of any country, for the type of modification you are taking is about making it or atleast for tax purposes treating it as a currency, this modification is in the hand of the Federal Reserve because the thing related to currencies and foreign currencies come under the gambit of federal reserve.

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Quote from: Husires on July 25, 2021, 01:36:47 AM

the increased demand from many people will force them to adopt more legislation and move forward, the first of which will be the acceptance of ETF and then we may see a change in the tax mood but I do not expect it to be recognized as a currency.

ETF is no longer wow and the laws related to usage of crypto by common people may not be much related to ETF (companies), hence I am rather afraid to hope too much yet in that area.
Bitcoin recognized as currency in US would be a very big step. I think that they'll delay it for now, since the implications are... big. And far beyond US.

So (back to OP), we will probably still see it as commodity for a while...

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Quote from: NeuroticFish on July 24, 2021, 09:26:10 AM

I don't know though if this will happen sooner or rather later. El Salvador (and others to come) should also leave FED/IRS out of possible schemes that deprives crypto from it rightful place in the economy.

Quote from: Saidasun on July 24, 2021, 01:45:15 PM

There is no way they that they do not make it a currency when and not if when more companies are accepting it. At the moment there is not many mainstream companies accepting it but that will change when the adoption and demand for Bitcoin goes higher.

The change will not be more than a tax change because every bitcoin transaction will be subject to tax and therefore accepting bitcoin will not bring any gains to companies.

Quote from: teosanru on July 24, 2021, 04:42:55 PM

teosanru

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Quote from: Husires on July 24, 2021, 03:22:48 AM

IRS cannot do anything. For IRS to accept bitcoin as a currency, the Federal Reserve needs to step in and say that yes bitcoin is a currency but then as it is a currency it will be monitored by the Fed too. Also, I think Fed won't do this because it would become one additional trouble for them because then they would need to scrutinize every bitcoin transaction like any other forex transaction which is certainly impossible. I think until there is pressure from the Government to regulate the cryptocurrency market altogether, IRS or even FED on a standalone basis really won't do this.

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Quote from: Husires on July 24, 2021, 03:22:48 AM

From what I know Tesla was doing some accountancy tricks (handle like they'd buy crypto from you) to accept bitcoin payments, so you probably have to pay tax for the fiat gains there.

But as long as more and more companies accept crypto as payment (whether directly or through payment processors who give them fiat), I would expect FED/IRS come to their senses and see crypto as money. I don't know though if this will happen sooner or rather later. El Salvador (and others to come) should also leave FED/IRS out of possible schemes that deprives crypto from it rightful place in the economy.

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