4 ms·

Any lawyers able to comment on what happens when untested federal government agency policies conflict with each other? How can you blame any company operating i

by Kinnard 11y ago

Any lawyers able to comment on what happens when untested federal government agency policies conflict with each other? How can you blame any company operating in this space? The agencies haven't figured their shit how. How could a company?

dogma1138 11y ago
There are no more conflicted policies for Bitcoin than there are for other "financial doodads". Different agencies treat, bonds, stocks, currencies, and commodities in different manner. This is fine because the interaction between the agencies and those assets do not overlap. If you sell bonds/stock the IRS will treat that sale according to their own guidelines for taxing investment property, the SEC might regulate the sale, but each agency cares about different things. The SEC cares that trades are kosher, the IRS just wants to make sure you pay your due taxes, heck even illegal income is taxable under IRS regulations so if you sell drugs or decide to rob a bank well pay your taxes. Just like the IRS doesn't care that state and federal laws make selling drugs illegal, they still see that as property and income, they really don't care about what the SEC or the CFTC think about bitcoin. And as far as i can tell the CFTC and SEC regulations don't conflict with each other either since they go into effect under different circumstances, and as far as i can tell both the CFTC and the FEC regulate exchange-traded commodities at different points and under different guidelines.
- eru 11y ago
  Would the IRS rat you out when you pay taxes on your illegal income?
  - sethhochberg 11y ago
    Check out the case Garner v. United States - the Supreme Court essentially ruled that your obligation to disclose your sources of income when paying taxes cannot trump your 5th amendment right to not be compelled to self-incriminate. If disclosing the source of income would incriminate you in a crime, you can declare the income and decline to note the source on your taxes.
    - eru 11y ago
      Thanks! I wonder whether that protection is always available? Ie can I always decline to note the source?
      - icebraining 11y ago
        If you couldn't, not declaring would be self-incriminating! (Don't take this as legal advice; the law is often nonsensical)
        eru 11y ago
        Yes, that's what I was wondering.
        dogma1138 11y ago
        To a point, saying "not telling" is better than saying "my drug cartel". The IRS might investigate but if they do not find any violations (of US tax law) they wont and cant pursue this matter any further, at least on paper.

by Kinnard 11y ago

dogma1138 11y ago

There are no more conflicted policies for Bitcoin than there are for other "financial doodads". Different agencies treat, bonds, stocks, currencies, and commodities in different manner. This is fine because the interaction between the agencies and those assets do not overlap. If you sell bonds/stock the IRS will treat that sale according to their own guidelines for taxing investment property, the SEC might regulate the sale, but each agency cares about different things. The SEC cares that trades are kosher, the IRS just wants to make sure you pay your due taxes, heck even illegal income is taxable under IRS regulations so if you sell drugs or decide to rob a bank well pay your taxes. Just like the IRS doesn't care that state and federal laws make selling drugs illegal, they still see that as property and income, they really don't care about what the SEC or the CFTC think about bitcoin. And as far as i can tell the CFTC and SEC regulations don't conflict with each other either since they go into effect under different circumstances, and as far as i can tell both the CFTC and the FEC regulate exchange-traded commodities at different points and under different guidelines.

eru 11y ago
Would the IRS rat you out when you pay taxes on your illegal income?
- sethhochberg 11y ago
  Check out the case Garner v. United States - the Supreme Court essentially ruled that your obligation to disclose your sources of income when paying taxes cannot trump your 5th amendment right to not be compelled to self-incriminate. If disclosing the source of income would incriminate you in a crime, you can declare the income and decline to note the source on your taxes.
  - eru 11y ago
    Thanks! I wonder whether that protection is always available? Ie can I always decline to note the source?
    - icebraining 11y ago
      If you couldn't, not declaring would be self-incriminating! (Don't take this as legal advice; the law is often nonsensical)
      - eru 11y ago
        Yes, that's what I was wondering.
      - dogma1138 11y ago
        To a point, saying "not telling" is better than saying "my drug cartel". The IRS might investigate but if they do not find any violations (of US tax law) they wont and cant pursue this matter any further, at least on paper.