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So the real question is, what exchange can I use as an American that doesn't report to the IRS?

by pard68 7y ago

pcwalton 7y ago
That isn't the "real question". Pay your taxes like everyone else.
JudgeWapner 7y ago
No, the real question is how much is it to set up a "trust" or some other bullshit entity in the US Virgin Islands and do all your trading that way - completely legal, completely tax-free, just like the 1%.
- caymanjim 7y ago
  It's not legal for Americans to completely avoid taxes simply by operating in a jurisdiction with different tax laws. You still have to report your foreign income to the IRS, you still have to pay taxes to the IRS. If you try to take the extreme step of acquiring a citizenship elsewhere and then renouncing your US citizenship, you even have to pay taxes to do that. The notion that "tax shelter" countries are a way to get around personal tax obligations is simply wrong. There are tax benefits, and plenty of people try to hide money this way, but it's not some magical solution that legally removes your tax obligation.
  - rphlx 7y ago
    > It's not legal for Americans to completely avoid taxes simply by operating in a jurisdiction with different tax laws. This is not correct, and pretty much all of the US Elite, above a certain wealth level, have some offshore structure(s), because there actually are major, legal benefits - including ones that can zero out the US individual tax liability for that activity, at least in some years. As a result it's only the legally- & financially- relatively unsophisticated middle classes, and perhaps the lower-upper-class, that has literally every single transaction subject to US taxation.
anonymous5133 7y ago
Don't use any exchange to begin with.
verdverm 7y ago
The IRS and Coinbase are starting to track the money flow, so even if you used some other exchange, you can still be traced. Pay your taxes
dmerrick 7y ago
You could sell your crypto to someone for cash
- hombre_fatal 7y ago
  https://localbitcoins.com/ https://localbitcoins.com/
ascagnel_ 7y ago
The real question is what can you do to avoid litigation and possible criminal charges for tax evasion -- _any_ transaction needs to be reported to the IRS, and willful evasion will generally lead to criminal charges.
tim333 7y ago
It's tricky to see into the future so an exchange like bitfinex might not report now but a court case next year might cause them to decide to.

So the real question is, what exchange can I use as an American that doesn't report to the IRS?

by pard68 7y ago

So the real question is, what exchange can I use as an American that doesn't report to the IRS?

pcwalton 7y ago

That isn't the "real question". Pay your taxes like everyone else.

JudgeWapner 7y ago

No, the real question is how much is it to set up a "trust" or some other bullshit entity in the US Virgin Islands and do all your trading that way - completely legal, completely tax-free, just like the 1%.

caymanjim 7y ago
It's not legal for Americans to completely avoid taxes simply by operating in a jurisdiction with different tax laws. You still have to report your foreign income to the IRS, you still have to pay taxes to the IRS. If you try to take the extreme step of acquiring a citizenship elsewhere and then renouncing your US citizenship, you even have to pay taxes to do that. The notion that "tax shelter" countries are a way to get around personal tax obligations is simply wrong. There are tax benefits, and plenty of people try to hide money this way, but it's not some magical solution that legally removes your tax obligation.
- rphlx 7y ago
  > It's not legal for Americans to completely avoid taxes simply by operating in a jurisdiction with different tax laws. This is not correct, and pretty much all of the US Elite, above a certain wealth level, have some offshore structure(s), because there actually are major, legal benefits - including ones that can zero out the US individual tax liability for that activity, at least in some years. As a result it's only the legally- & financially- relatively unsophisticated middle classes, and perhaps the lower-upper-class, that has literally every single transaction subject to US taxation.

anonymous5133 7y ago

Don't use any exchange to begin with.

verdverm 7y ago

The IRS and Coinbase are starting to track the money flow, so even if you used some other exchange, you can still be traced. Pay your taxes

dmerrick 7y ago

You could sell your crypto to someone for cash

hombre_fatal 7y ago
https://localbitcoins.com/ https://localbitcoins.com/

ascagnel_ 7y ago

The real question is what can you do to avoid litigation and possible criminal charges for tax evasion -- _any_ transaction needs to be reported to the IRS, and willful evasion will generally lead to criminal charges.

tim333 7y ago

It's tricky to see into the future so an exchange like bitfinex might not report now but a court case next year might cause them to decide to.