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JstLikeMagyk

US sends 10k people letters over crypto taxes

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So I really don't know what to make of this

The US govt is trying to collect on missed taxes from over 10k American citizens who brought and sold bitcoin between 2013-2015

1) it's why I don't trust companies like coinbase

2) it's why we don't trust the government they are trying to claim taxes on something that at the same time they want to boycot and don't even understand properly

3) It may be true that global regulation of some sort will be seen in the future that if we want crypto to succeed we'll have to embrace.

https://www.forbes.com/sites/billybambrough/2019/07/27/the-u-s-treasury-secretary-made-a-dire-warning-over-the-future-of-bitcoin/#53bc3fc2c938

 

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52 minutes ago, JstLikeMagyk said:

So I really don't know what to make of this

The US govt is trying to collect on missed taxes from over 10k American citizens who brought and sold bitcoin between 2013-2015

1) it's why I don't trust companies like coinbase

2) it's why we don't trust the government they are trying to claim taxes on something that at the same time they want to boycot and don't even understand properly

3) It may be true that global regulation of some sort will be seen in the future that if we want crypto to succeed we'll have to embrace.

https://www.forbes.com/sites/billybambrough/2019/07/27/the-u-s-treasury-secretary-made-a-dire-warning-over-the-future-of-bitcoin/#53bc3fc2c938

 

What if you are one of those bitcoin users before who bougth a lot but already stopped from using Bitcoin. Are you obliged to pay it with your money that doesn't came from Bitcoin. How can they trace those people? It will never be done for sure. It's a hard process and impossible to happen. 

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Wow, living in US , it's no more the "American Dream" , now they collect taxes over their citizens, well all means are good to "stole" money from the people, it's really a shame!

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the government is always jealous of currency movements. always trying to find a loophole how to get something to get taxed, while the tax money is not clear where it goes, even though there are many government projects that rely on local tax money, but the details are not transparent and only known to staff.
Likewise, bitcoin ... they are actually jealous, especially if it is a bitcoin value, who is not tempted ... the taxation of bitcoin holders is just an excuse ... in essence their goal is actually to enrich themselves.
why is the tax determination now only applied? why not done since 2013 ???

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I also do not like these actions by the US government as it negatively affects the cryptocurrency market. It seems to me that such a financial giant like the United States is going the wrong way. On this you need to earn, and not to prohibit.

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1 hour ago, Han2x said:

What if you are one of those bitcoin users before who bougth a lot but already stopped from using Bitcoin. Are you obliged to pay it with your money that doesn't came from Bitcoin. How can they trace those people? It will never be done for sure. It's a hard process and impossible to happen. 

For those people, Coinbase still has a record of your initial investment in BTC (if you bought through them). The government may not know exactly what happened to the BTC after (whether you sold at a profit/loss, or held), but I reckon those letters are going to be a demand for financial records indicating what they did with that BTC, so the government can determine whether they owe them any additional income taxes.

It's basically the IRS doing an audit on your taxes - and in that case, the onus is on you to supply the paperwork showing you paid everything you owed. If you can't cough it up...they've got the power to charge you back taxes, fines, or even charge you with tax fraud. Just something that comes with using a centralized exchange that has implemented KYC.

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I guess coinbase members should prepare some cash to pay for it. Coinbase will let government to access info of their users then it will be successful but for sure it is just a small part of the entire bitcoin users.

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To be honest, I don't understand how a tax authority can go back in time to tax people on something when there was no relevant law in place regarding crypto during that time period. Is there something that I am missing?

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8 hours ago, williamsh said:

To be honest, I don't understand how a tax authority can go back in time to tax people on something when there was no relevant law in place regarding crypto during that time period. Is there something that I am missing?

Even though there haven't always been laws that directly concerning cryptocurrencies, the government can still probably regulate them in much the same way as property sales. For example, there aren't laws directly concerning lawnmowers either - but if you bought a lawnmower at one price, then sold it to someone else for more, that profit you made is still taxable income. You could think of cryptocurrencies as the same sort of thing - they're property, just not the physical sort.

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1 hour ago, Serlite said:

Even though there haven't always been laws that directly concerning cryptocurrencies, the government can still probably regulate them in much the same way as property sales. For example, there aren't laws directly concerning lawnmowers either - but if you bought a lawnmower at one price, then sold it to someone else for more, that profit you made is still taxable income. You could think of cryptocurrencies as the same sort of thing - they're property, just not the physical sort.

Oh, okay that makes sense. So they were taxable in the past since they were a form of property. I guess they should have made that clear to the US residents earlier, and they probably would not have had as many people not pay tax on bitcoin.

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3 hours ago, williamsh said:

Oh, okay that makes sense. So they were taxable in the past since they were a form of property. I guess they should have made that clear to the US residents earlier, and they probably would not have had as many people not pay tax on bitcoin.

As I understand this is during a period where cryptocurrency was under tax regulation of some sort.

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On 27/07/2019 at 13:23, MrNice23 said:

Wow, living in US , it's no more the "American Dream" , now they collect taxes over their citizens, well all means are good to "stole" money from the people, it's really a shame!

That's the absolute truth, the government is always looking to get their piece of everything.  They want their piece of the pie and will try to regulate anything and everything they can...

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On 27/07/2019 at 10:23, MrNice23 said:

Wow, living in US , it's no more the "American Dream" , now they collect taxes over their citizens, well all means are good to "stole" money from the people, it's really a shame!

Agree with your comments. In US, people often say this is a free country but not so, they take people's tax money and do useless things
 

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Some airdrop projects that I participated in also stipulate that American people will be banned from participating. It is possible that because the US government has turned its back on crypto, the projects hate the government that the American people
 

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1 hour ago, syllableno said:

Some airdrop projects that I participated in also stipulate that American people will be banned from participating. It is possible that because the US government has turned its back on crypto, the projects hate the government that the American people
 

But they still own almost all the nodes lmfao makes absolutely no sense tbh.

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I know this is not true but if not taxing Bitcoin and cryptocurrency then surely the US will ban people from using Bitcoin and cryptocurrency. But actually, the taxation of cryptocurrency is absurd
 

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6 minutes ago, rerosalind said:

I know this is not true but if not taxing Bitcoin and cryptocurrency then surely the US will ban people from using Bitcoin and cryptocurrency. But actually, the taxation of cryptocurrency is absurd
 

The US is taxing crypto as are many countries it's just a matter of how the fuck do they really know who has crypto other than asking local exchanges like coinbase to rat on their own customers which just makes a bunch of people give up on the service.

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Very often, employers provide incorrect reports to the tax authorities. This is a real problem right now. And then it is terrible to imagine how many problems both employers and employees have. And it's good if you immediately noticed the error and managed to fix everything. When problems are found after a few years, it's already terrible. Therefore, I try to record all my financial transactions independently and once a year I turn to independent specialists for reporting. For example, for the last two years I have been working with https://www.thepaystubs.com/1099-form-generator.

Edited by dinajafer

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