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> That's why the founder can threaten them with the IRS, because they (likely(1)) do not rightfully (as defined per law) own it. This statement is nonsensical
by djrogers 5y ago
> That's why the founder can threaten them with the IRS, because they (likely(1)) do not rightfully (as defined per law) own it.
This statement is nonsensical - the IRS has no enforcement mandate for theft/fraud, nor does it have any authority to return stolen property. All the IRS would do is say "Hey, I heard you got an extra $NN last year - please pay your taxes on it".
It could even be argued that by reporting people the the IRS, the founder is implicitly admitting that the current possessors actually do own said crypto, otherwise they wouldn't owe any tax on it.
- mason55 5y agoRe: your last sentence, I think it’s more likely the implication is that lots of them have crypto gains that they haven’t paid taxes on.
- deleted 5y ago[deleted]
- dxf 5y agoNo, because you have to pay taxes on income you receive from illegal activities. https://www.irs.gov/publications/p17 https://www.irs.gov/publications/p17 Illegal activities. Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Schedule 1 (Form 1040), line 8, or on Schedule C (Form 1040) if from your self-employment activity.
- FDSGSG 5y ago>Stolen property. If you steal property, you must report its fair market value in your income in the year you steal it unless you return it to its rightful owner in the same year. :)