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My prediction: they will store the history of all Bitcoin transactions and try to identify all wallet owners; when identified they will check if profits were re
by pulse7 9y ago
My prediction: they will store the history of all Bitcoin transactions and try to identify all wallet owners; when identified they will check if profits were reported and if taxes were paid; if not -> good luck; the same for other countries in the world </end of my prediction>
- IAmEveryone 9y agoHow is that even a prediction? > store the history of all Bitcoin transactions Bitcoin conveniently does this for them > and try to identify all wallet owners That’s the headline here > check if profits were reported and if taxes were paid Which is the IRS’ job
- zzz157 9y ago>Which is the IRS’ job Ever heard of the 4th Amendment?
- Karunamon 9y agoThe 4th amendment does not prevent combing through public data (the blockchain), nor does it prevent going through due process to obtain data (the coinbase order).
- koboll 9y agoCross-referencing a public ledger is not an illegal search.
- IAmEveryone 9y agoSure. And so has the IRS, which “persuaded a federal judge”, according to the article. I guess they thought it was a reasonable request to get the data of the 25,000 US citizens who made significant profit with bitcoin in those years, when only a few hundred reported such earnings in total.
- chrisco255 9y agoThat's an estimate at best. How many if tbise who profitted actually cashed out?
- koolba 9y agoIt's not just a matter of tracking those that cashed out as taxes are on the net profits of individual trades. Even converting between coins (ex: sell BTC, buy ETH) is a taxable event.
- verelo 9y agoI’ve got from good sources that in Canada the RCMP is (...was several years ago) already doing exactly this. And it’s very easy to do since the exchange in question requires ID to create your account.
- sp332 9y agoThe bitcoin blockchain does not keep a record of trades you make on Coinbase though.
- roel_v 9y agoI would say this a very natural and logical thing to do - with the blockchain storing the history of transactions for eternity, you just need to get some programmers to write some code to cross reference a few systems and leave it running for the years to come, catching people as soon as they make a single mistake. The business case and expected ROI for this project must be the easiest one any inspector ever had to write.
- overcast 9y agoI suspect they'll be investigating the large players mostly. They don't like tax evaders, but they REALLY don't like big tax evaders.