"Lawyering Up" - Coinbase to Send Data on 13,000 Users to the IRS

[R-T-B]

Really? I thought it was prevalent on the dark web and other shady sources where one wants to make a transaction that can't be traced back to them personally.

Edit: and not just limited to BC pretty much a lot of cryptocurrencies are attractive because of their anonymous nature.

Monero has been the new one for some time. Bitcoin is anonymous, but traceable. Coinbase does not deal in Monero.

 

[iO]

A nice way to gather potential auditing candidates would be if tax collectors gave the electricity companies a call to ask which customers' power usage went up...

 

[R-T-B]

A nice way to gather potential auditing candidates would be if tax collectors gave the electricity companies a call to ask which customers' power usage went up...

You'd get a ton of pot farms...

...And my energy usage went down when I started mining, due to the retirement of a huge core 2 quad server system the miner is now also doing the work of, so...

 

[Space Lynx]

No security is unbreakable. The IRS, the NSA, or any other government agency will find a way, or someone else will. And if they have to keep petabytes of data stored for years until the day they find the way to crack Monero's security, they will. They have the resources for that, and when that happens, trust me, they will hunt down every single person (natural or legal) who didn't pay all their taxes. And if not for the taxes, they'll do it because of terrorism.

Well, to be honest, I don't know for how long after the tax evasion occurs the USA govt. can lay charges against a taxpayer for such crime but, in Argentina (which is where I live) the tax office can ask you to pay taxes up to five fiscal years later if you had already been registered as a taxpayer (only if you have a certain amount of wealth, a relatively high yearly income or if you do business that makes money, regardless of whether it's for profit or not) or up to ten years if you have not been registered as a taxpayer. I suppose the US IRS works with similar time frames if not longer.

If terrorism is involved or could be involved, well, they won't stop. Ever.

There are rumors the NSA made Bitcoin and Monero, etc. I guess an employee for the NSA published a paper in 1996 at MIT that laid the ground work for a blockchain exactly like Bitcoin, that paper is still free to read on MIT's website if your curious.

Really? I thought it was prevalent on the dark web and other shady sources where one wants to make a transaction that can't be traced back to them personally.

Edit: and not just limited to BC pretty much a lot of cryptocurrencies are attractive because of their anonymous nature.

FBI has raided many many of these black market websites, arresting people by the loads. People can track Bitcoin easy since the block chain is public.

A nice way to gather potential auditing candidates would be if tax collectors gave the electricity companies a call to ask which customers' power usage went up...

A lot of people steal electricity from their places of work, so as long as the mining farm is not to big, it would probably go unnoticed. or people mine at University where electricity is free in the dorms, etc. this is why crypto should never have been born, heh. its such a bad business model. I for one am proud of Folding at Home though, at least that is helping humanity.

 

[NdMk2o1o]

Well the US military also created TOR, so it wouldnt really surprise me if they had laid the foundations for Crypto as well, I mean, lay down a web and sit back and watch the flies trap themselves, nothing is secure or anonymous as far as the web is concerned these days and that's how you should approach anything on the internet.

 

[iO]

You'd get a ton of pot farms...

Hehe thats true.
But you might be able to identify big mining rigs if the power usage doubled or even tripled since May or November.

 

[R-T-B]

Hehe thats true.
But you might be able to identify big mining rigs if the power usage doubled or even tripled since May or November.

Maybe. But I am confident the privacy advocates would come out of the woodwork and prevent it.

 

[hat]

I actually looked this up when I did my taxes... but it was kinda overwhelming. Not even sure how I would report any earnings...

 

[R-T-B]

I actually looked this up when I did my taxes... but it was kinda overwhelming. Not even sure how I would report any earnings...

IIRC profit is simply considered capital gains.

That being said I'd reccomend a tax guy.

 

[evernessince]

so many surprise IRS penalty fees incoming in the mail, can't ever escape the tax man, this is why Monero coin and not using an exchange ever is the only true path forward to cryptocurrency. otherwise you will never escape the banks and fiat

That's not entirely true. If you are rich you don't have to pay squat. Jeff Bezos said this on social media, all the while wondering to do with his piles of money. If only we all had the credit to buy a yacht, then we could be like the rich and deduct it from out taxes. Make the peasants pay for your 1.2 million dollar luxury.

 

[trparky]

You know what they say about Al Capone right? The authorities couldn't get him on bootlegging and any of the other nefarious things that he was doing but there was one thing that they were able to pin on him... tax evasion. Say what you will about the IRS but they will always get their money, one way or another; even if that means going to the ends of the Earth to get it. There is no escaping the tax man, he will always get his money.

 

[Space Lynx]

You know what they say about Al Capone right? The authorities couldn't get him on bootlegging and any of the other nefarious things that he was doing but there was one thing that they were able to pin on him... tax evasion. Say what you will about the IRS but they will always get their money, one way or another; even if that means going to the ends of the Earth to get it. There is no escaping the tax man, he will always get his money.

Except for the corporations who leave billions and billions of dollars off shore to evade taxes. Minus those types, yeah I agree. ;p

I think Apple had several hundred billion offshore at one point to avoid taxes, and only recently brought some of them back to the states/banks after Trump's tax plan passed. lol, but yeah I get your point, it just doesn't apply to everyone sadly.

 

[hat]

IIRC profit is simply considered capital gains.

That being said I'd reccomend a tax guy.

But I didn't "invest" in bitcoin. I bought video cards, then mined on Nicehash and got paid in bitcoin for my services.

 

[R-T-B]

But I didn't "invest" in bitcoin. I bought video cards, then mined on Nicehash and got paid in bitcoin for my services.

You don't need to invest. If you made a profit, it's still a capital gains tax according to the SEC last I checked in (you can also write off expenses). But I'm not 100% up to date on the latest, so I'd ask a tax pro to be certain.

Nicehash being a "service" may be something different, but I certainly would not count on it.

 

[ensabrenoir]

..... thought everyone knew that death's first cousin "Taxes" and his wife "IRS" is unescapable. If we started using dandelions for payment.... there's gonna be a few petals collected for taxes.

 

[Prima.Vera]

I just love it how user on this forum are actually defending the governments taxation of ...well, basically everything.

 

[R-T-B]

..... thought everyone knew that death's first cousin "Taxes" and his wife "IRS" is unescapable. If we started using dandelions for payment.... there's gonna be a few petals collected for taxes.

Not quite. There's going to be the dollar (or whatever currency) value of 'dem dandelions in taxes though, for certain.

 

[yotano211]

That's not entirely true. If you are rich you don't have to pay squat. Jeff Bezos said this on social media, all the while wondering to do with his piles of money. If only we all had the credit to buy a yacht, then we could be like the rich and deduct it from out taxes. Make the peasants pay for your 1.2 million dollar luxury.

You do that that having lots of money doesnt have to do anything with not paying "squat". People have smart people that work for them called accountants. Maybe you should have one someday. And no, the person that does your taxes called "tax preparer" doesnt qualify has a accountant, that is just a person who took a 10 hour class on how to prepare people's tax forms. Accountants go to school for 4+years and have to become a CPA.
I make more than my sister yet pay less than her in overall percent rate because I have a accountant, and I write off what he charges me also.

 

[R-T-B]

I make more than my sister yet pay less than her in overall percent rate because I have a accountant, and I write off what he charges me also.

I have a tax guy who my parents introduced me to who is also an accountant, and I can vouch for that. Worth their fee for certain if you are dealing with any kind of income beyond a simple basic one.

 

[yotano211]

I have a tax guy who my parents introduced me to who is also an accountant, and I can vouch for that. Worth their fee for certain if you are dealing with any kind of income beyond a simple basic one.

And good for you, I am sure that accountant is well worth it for you and your parents.

 

[lexluthermiester]

USA is pretty reasonable on crypto tax (it's considered a capital gains tax), so I pay it.

The question is, when do you pay it and how much do you pay? With crytocoin values fluctuating wildly, how do you establish a taxable value? It should only be taxed when converted into a real currency. Otherwise the IRS can claim one value which could be wildly inaccurate from actual value, which could introduce a huge potential for taxation abuse. This is yet another great reason to regulate cryptocoin.

 

[R-T-B]

The question is, when do you pay it and how much do you pay?

Your profit margin at cashout. The SEC already declared this pretty clearly, IIRC. I don't have any documents to back it up though which is why I urge consulting a professional.

 

[techy1]

You'd get a ton of pot farms...

...And my energy usage went down when I started mining, due to the retirement of a huge core 2 quad server system the miner is now also doing the work of, so...

I have not red bigger BS in a while.

 

[R-T-B]

I have not red bigger BS in a while.

I metered it with some energy meters, and the core 2 quad server drank 600W while the miner with it's Ryzen R3 1200 + platinum rated PSU and Pascal GPUs drinks <500W and is just as good as an NAS while doing it's mining.

It's called multitasking.

It's not much savings, but it's there. Sorry to burst your bubble, but I've documented it in several places. It IS possible if well planned.

See my energy consumption article here for readings on my mining rig. I used the same meter on the core 2 quad NAS. it basically came down to the Core 2 quad being before 80PLUS PSUs were a common thing. (That and it's horribly inefficient Fermi-based video card and huge delta electronics blowers probably didn't help).

https://www.techpowerup.com/240951/confessions-of-a-crypto-miner-efficiency

 

[techy1]

I metered it with some energy meters, and the core 2 quad server drank 600W while the miner with it's Ryzen R3 1200 + platinum rated PSU and Pascal GPUs drinks <500W and is just as good as an NAS while doing it's mining.

It's called multitasking.

It's not much savings, but it's there. Sorry to burst your bubble, but I've documented it in several places. It IS possible if well planned.

See my energy consumption article here for readings on my mining rig. I used the same meter on the core 2 quad NAS. it basically came down to the Core 2 quad being before 80PLUS PSUs were a common thing. (That and it's horribly inefficient Fermi-based video card and huge delta electronics blowers probably didn't help).

https://www.techpowerup.com/240951/confessions-of-a-crypto-miner-efficiency

so you mine with Ryzen R3 1200 only? if answer to that question is "No, but..." = sorry to burst your bubble but you are full of shyte and your statement "And my energy usage went down when I started mining" is a LIE !