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There are two separate matters here. Defining the law and enforcing the law. Misreporting capital gains on crypto violates existing law and is illegal today. Ta
by banachtarski 7y ago
There are two separate matters here. Defining the law and enforcing the law. Misreporting capital gains on crypto violates existing law and is illegal today. Tax evasion by legitimate means (401ks, IRAs, writing off losses) is perfectly legal, and if you or I have complaints, this should be taken up with policy makers and at voting booths.
- JumpCrisscross 7y ago> Tax evasion by legitimate means Tax avoidance is legal. Tax evasion is illegally not paying taxes. (The distinction is purely legal.) If you don't like someone's tax avoidance, you change the law. If you don't like someone's tax evasion, you prosecute them.
- banachtarski 7y agoThanks for the correction, totally mixed up the terms.
- ascagnel_ 7y ago> Tax evasion by legitimate means A nitpick on your language: "tax evasion" specifically refers to _illegal_ actions (eg misreporting capital gains); "tax avoidance" is the term to describe _legal_ actions that reduce a tax burden.
- banachtarski 7y agoThanks! Duly noted