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  1. #1
    The Buzz's Avatar
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    Default IRS going after tax evaders in bitcoin case

    According to a Yogonet.com article, the Internal Revenue Service is seeking the personal data of all U.S. Coinbase users who transacted between 2013 and 2015.

    In a statement, a Coinbase spokesman said the exchange site was “very concerned with the indiscriminate breadth of the government’s request.” The subjects of the data request are identified in court documents simply as an indeterminate number of “John Does.” The IRS filing further states that “There is a reasonable basis for believing that such group or class of persons may fail, or may have failed, to comply with one or more provisions of the internal revenue laws . . . In other words, the IRS believes that buying Bitcoin is probable cause for making an individual the subject of a tax evasion investigation.
    Here is a link to the complete article: http://www.yogonet.com/international...n-bitcoin-case

    And, ICYMI, here is a link to the cover story from the new GPWA Times magazine about bitcoin: https://www.gpwatimes.org/issue36/#18

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  3. #2
    Sherlock's Avatar
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    Coinbase said they will not comply without a court decision. This is focused on traders = people who made profit within conbase buying low and selling high.

    https://blog.coinbase.com/2016/11/18...tomer-privacy/
    Last edited by Sherlock; 22 November 2016 at 1:28 pm.
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  5. #3
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    Quote Originally Posted by Sherlock View Post
    Coinbase said they will not comply without a court decision.
    Actually they said that they'll oppose the decision in court. I would NOT hold out hope of getting a favorable result against the IRS.

    If someone in the US has bought low and sold high then they should have paid capital gain tax on those profits.
    Somewhere between 15%, 20% or 30% I think depending on other income, and short term (under a year) vs long term.

    (I'm not exactly sure - as I'm not a US citizen and the US tax code is VERY clause heavy)
    Source : https://en.wikipedia.org/wiki/Capita..._United_States

    Additionally, this opposition to standard US investment law just ads more bad PR to bitcoin being a "dark" commodity / tax avoiders scheme.
    Just bad PR both ways - and makes Coinbase and it's users a target.

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  7. #4
    Sherlock's Avatar
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    I agree. It is just a postponing until they give up the data. Still it is getting interesting. Consider a case, where the trader had a profit, but then cashed out not fiat, but btc. How to prove he is the btc holder (=that he really made a profit)? What if he claims he lost private keys or sent the money to someone else (and it was a fee for brokerage)? At least they would have to define, how to put btc into accounting books now; e.g. is it possible to create invoices with bitcoins? And that will legitimaze bitcoin even further.
    We are all bloodsucking ticks, hungry, devious
    each one latched on to the ass of the previous
    when the last and the first latch on it can be shown
    ass-blood sucked by the first from the last is his own

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    Pokerface (22 November 2016)

  9. #5
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    Interesting stuff !

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